Is Cohu (COHU) stock Halal?

Cohu is a prominent player in the semiconductor equipment and services industry. The company specializes in advanced testing equipment for the semiconductor sector, which is crucial for ensuring the performance and reliability of semiconductor devices that are integral to modern technology. Cohu's products are essential for the inspection, testing, handling, and packaging of semiconductors, serving a pivotal role in the production and quality assurance phases of semiconductor manufacturing. Before any of that matters to a Muslim investor, one question comes first: is Cohu stock Halal?

Is Cohu Shariah compliant?

Yes. In the October 2026 screening Cohu (COHU) passes AAOIFI Shariah Standard No. 21: the business activity screen and every financial ratio screen hold. The Shariah case on a technology company like Cohu is rarely about the product. What AAOIFI Shariah Standard No. 21 examines is the money around the product: cash parked in instruments that earn Riba, borrowing measured against a market capitalisation that moves daily, and any incidental income from sources Islam prohibits, which must stay below 5% of revenue.

Does Cohu pass the business activity test?

Yes. In the October 2026 screening Cohu holds an overall PASS, which a stock only earns when its core business clears the activity screen. The watch item for technology names is incidental: cash returns and platform content can carry impermissible elements, which AAOIFI tolerates only below the thresholds.

Is Cohu's income Halal?

Yes, within AAOIFI's tolerance. Cohu's income from non-permissible sources stays below 5% of revenue in the October 2026 screening, and the small impure portion is handled through purification: the factor of 97.5% tells holders of COHU what share of each dividend to keep and what remainder to donate to charity. On a dividend yield of around 0.35%, the purification amount is modest but real.

Does Cohu meet AAOIFI's debt and investment ratio requirements?

Yes. Both caps hold this month: interest bearing investments and interest bearing debt each stay below 30% of market capitalisation, measured against a market capitalisation of $3.23B (market data as of 1 October 2026). Because the caps move with the share price, our Shariah Supervisory Board has COHU re-screened every month, and the result above always shows the latest verdict.

Why do other halal screeners show a different verdict for Cohu?

Screeners can disagree without either being wrong. AAOIFI Shariah Standard No. 21, which Tabadulat applies, measures interest bearing debt and investments against market capitalisation with a 30% ceiling. MSCI and FTSE measure them against total assets with a 33% ceiling, and S&P and Dow Jones Islamic use a multi year average of market capitalisation. Data dates differ too, because each provider reads filings and prices on its own schedule. The same company can therefore pass one standard and fail another in the same month. Tabadulat publishes one answer, the AAOIFI result as of October 2026, and re-screens it every month.

Tabadulat is an ADGM regulated brokerage whose license covers Shari'a Compliant Regulated Activities, as the FSRA permission names them. New to the terminology? Gharar and Maysir, Sukuk, Zakat and purification are all explained in plain English.

New to the screening method? Read Why a Halal Stock Screener Matters for Halal Investing