Is SemiLEDs Corp. LEDS stock halal to invest in?

No, as of August 2026, SemiLEDs Corp. stock (LEDS) is not currently classified as a Shariah compliant stock. This verdict follows the screening methodology of AAOIFI (the Accounting and Auditing Organization for Islamic Financial Institutions), whose Shariah Standard No. 21 is the leading global benchmark for screening halal stocks. To qualify as halal under this standard, a company must keep non-permissible income below 5% of total revenue, keep both interest-bearing investments and interest-bearing debt below 30% of market capitalisation, and have no impermissible preference share structure. SemiLEDs Corp. currently does not meet the threshold for the interest-bearing investments screen. Because screenings are refreshed monthly as new financial reports are published, a non-compliant stock can regain compliant status if its financial structure changes. You can track the latest status of SemiLEDs Corp. and discover Shariah compliant alternatives among the halal stocks in the Tabadulat app.

How often is SemiLEDs Corp. LEDS reviewed for Shariah compliance?

Tabadulat reviews SemiLEDs Corp. LEDS for Shariah compliance every month. Each review applies the AAOIFI Shariah Standard No. 21 methodology, screening the company's business activities, non-permissible income, interest-bearing investments, interest-bearing debt, and preference shares, against the company's latest available financial data. The process operates under the direct supervision of Tabadulat's dedicated Shariah Supervisory Board of Islamic finance scholars. Because compliance depends on financial ratios that move with market capitalisation and reported results, a stock's status can change from one review to the next. Monthly screening ensures the status shown for SemiLEDs Corp. reflects current financial data rather than an outdated assessment, and Tabadulat app users are notified if a holding in their portfolio becomes non-compliant.

Does SemiLEDs Corp. LEDS pass the AAOIFI Non Permissible Income criteria?

Yes, as of August 2026, SemiLEDs Corp. stock (LEDS) passes the AAOIFI non-permissible income screen. Under AAOIFI Shariah Standard No. 21, income from impermissible sources (such as interest or riba, conventional financial services, alcohol, gambling, or tobacco) must remain below 5% of a company's total revenue. SemiLEDs Corp.'s income from non-permissible sources is currently within this 5% threshold. Even permissible levels of incidental impure income should still be purified: investors donate the corresponding share of dividends to charity, as reflected in the stock's purification factor. This screen is reassessed monthly using the company's latest financial disclosures.

Does SemiLEDs Corp. LEDS pass the AAOIFI Interest Bearing Investments criteria?

No, as of August 2026, SemiLEDs Corp. stock (LEDS) does not pass the AAOIFI interest-bearing investments screen. Under AAOIFI Shariah Standard No. 21, the cash a company places in interest-earning instruments (such as conventional deposits, bonds, treasury bills and money-market funds) must remain below 30% of its market capitalisation. SemiLEDs Corp.'s interest-bearing investments currently exceed this 30% limit, meaning too large a share of the company's value derives from riba-based instruments for the stock to qualify as halal on this criterion. The ratio moves with both the balance sheet and the share price, and is reassessed monthly.

Does SemiLEDs Corp. LEDS pass the AAOIFI Interest Bearing Debt criteria?

Yes, as of August 2026, SemiLEDs Corp. stock (LEDS) passes the AAOIFI interest-bearing debt screen. Under AAOIFI Shariah Standard No. 21, a company's borrowings that accrue interest (conventional bank loans, bonds and similar riba-based financing) must remain below 30% of its market capitalisation. This cap limits shareholders' exposure to interest-based leverage. SemiLEDs Corp.'s interest-bearing debt is currently within the 30% threshold. Because market capitalisation changes daily, a company's debt ratio can drift toward or away from the limit even without new borrowing, which is why this screen is reassessed every month.

What is the dividend purification factor for SemiLEDs Corp. LEDS stock?

SemiLEDs Corp. (LEDS) is currently classified as not Shariah compliant, so no dividend purification factor applies, because purification factors are calculated only for stocks that pass the AAOIFI screens. Purification (tazkiyah) is the practice of donating to charity the small portion of dividend income that stems from incidental non-permissible sources, such as interest earned on a compliant company's cash deposits. For non-compliant stocks the issue is not purification but eligibility: under AAOIFI Shariah Standard No. 21 the stock does not currently qualify as a halal investment. If SemiLEDs Corp. returns to compliance in a future monthly screening, its purification factor will be published alongside its updated status in the Tabadulat app.

Does SemiLEDs Corp. LEDS pass the AAOIFI Preference Share screen?

Yes, as of August 2026, SemiLEDs Corp. stock (LEDS) passes the AAOIFI preference share screen. AAOIFI Shariah Standard No. 21 prohibits investing in preference shares because they grant holders guaranteed or priority rights to dividends and capital ahead of ordinary shareholders, a structure that conflicts with the Shariah principle that investors should share profit and loss in proportion to their ownership. SemiLEDs Corp. has no impermissible preference share structure affecting its ordinary shares, so the stock is compliant on this criterion. Like all AAOIFI screens, this is verified in each monthly review.

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SemiLEDs Corp.

NASDAQ

Shariah-Compliant

Not Shariah

LEDS

About

SemiLEDs Corp.

LEDS

Semileds Corporation is a producer of light-emitting diode (LED) chips and LED components. The primary function of these products is to provide efficient and versatile lighting solutions that are used in various applications, ranging from general lighting to specialized uses such as horticultural lighting, industrial settings, and architectural design. Notably, Semileds' innovations are recognized within sectors such as commercial, residential, and street lighting due to their energy efficiency and long lifespan relative to traditional lighting options. The role of Semileds Corporation in the market is pivotal in advancing LED technology, offering solutions that enhance lighting quality while reducing energy consumption and costs. The company's focus on developing high-performance products allows it to impact industries that prioritize sustainability and efficiency. Additionally, with the global push towards energy-efficient technologies, Semileds stands out as a key player in the shift away from traditional lighting sources, contributing to the broader adoption of eco-friendly and cost-effective lighting solutions. Semileds is based in Taiwan, situating it crucially within the dynamic and competitive semiconductor and LED markets of Asia.

Sector:

Technology

Industry:

Semiconductors

Employees:

116

Website:

https://www.semileds.com

LEDS

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SemiLEDs Corp.

About

SemiLEDs Corp.

LEDS

Frequently asked questions

Is SemiLEDs Corp. LEDS stock halal to invest in?

How often is SemiLEDs Corp. LEDS reviewed for Shariah compliance?

Does SemiLEDs Corp. LEDS pass the AAOIFI Non Permissible Income criteria?

Does SemiLEDs Corp. LEDS pass the AAOIFI Interest Bearing Investments criteria?

Does SemiLEDs Corp. LEDS pass the AAOIFI Interest Bearing Debt criteria?

What is the dividend purification factor for SemiLEDs Corp. LEDS stock?

Does SemiLEDs Corp. LEDS pass the AAOIFI Preference Share screen?

Can I buy SemiLEDs (LEDS) stock on Tabadulat?

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