Is Magnachip Semiconductor Corp. MX stock halal to invest in?

No, as of August 2026, Magnachip Semiconductor Corp. stock (MX) 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. Magnachip Semiconductor Corp. currently does not meet the threshold for the interest-bearing investments and interest-bearing debt screens. 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 Magnachip Semiconductor Corp. and discover Shariah compliant alternatives among the halal stocks in the Tabadulat app.

How often is Magnachip Semiconductor Corp. MX reviewed for Shariah compliance?

Tabadulat reviews Magnachip Semiconductor Corp. MX 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 Magnachip Semiconductor 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 reflects current financial data rather than an outdated assessment, and Tabadulat app users are notified if a holding in their portfolio becomes non-compliant.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 Magnachip Semiconductor Corp. MX pass the AAOIFI Non Permissible Income criteria?

Yes, as of August 2026, Magnachip Semiconductor Corp. stock (MX) 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. Magnachip Semiconductor 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 Magnachip Semiconductor Corp. MX pass the AAOIFI Interest Bearing Investments criteria?

No, as of August 2026, Magnachip Semiconductor Corp. stock (MX) 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. Magnachip Semiconductor 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 Magnachip Semiconductor Corp. MX pass the AAOIFI Interest Bearing Debt criteria?

No, as of August 2026, Magnachip Semiconductor Corp. stock (MX) does not pass 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. Magnachip Semiconductor Corp.'s interest-bearing debt currently exceeds this 30% limit, meaning the company relies on riba-based financing beyond the level AAOIFI permits for a halal investment. A company can return to compliance by reducing debt or through changes in market capitalisation, and the screen is reassessed monthly.

What is the dividend purification factor for Magnachip Semiconductor Corp. MX stock?

Magnachip Semiconductor Corp. (MX) 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 Magnachip Semiconductor Corp. returns to compliance in a future monthly screening, its purification factor will be published alongside its updated status in the Tabadulat app.

Does Magnachip Semiconductor Corp. MX pass the AAOIFI Preference Share screen?

Yes, as of August 2026, Magnachip Semiconductor Corp. stock (MX) 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. Magnachip Semiconductor 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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Magnachip Semiconductor Corp.

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About

Magnachip Semiconductor Corp.

MX

Magnachip Semiconductor Corporation operates as a leading designer and manufacturer of analog and mixed-signal semiconductor products worldwide. Specializing in various sectors, including consumer electronics, industrials, and automobiles, Magnachip focuses on delivering high-performance solutions that enhance the functionality of electronic devices. The company's primary product offerings include display drivers, used extensively in OLED and LCD displays, as well as power management integrated circuits (PMICs), essential for efficient power control in electronic gadgets. Magnachip Semiconductor plays a critical role in advancing display technology, particularly with the rise of smart devices and electric vehicles. Headquartered in South Korea, it leverages advanced technology and manufacturing capabilities to meet the growing global demand for semiconductor components, making it a significant player in the tech supply chain. Moreover, its ongoing innovations and strategic partnerships underscore its market importance, catering to both well-known multinational corporations and emerging tech startups.

Sector:

Technology

Industry:

Semiconductors

Employees:

881

Website:

https://www.magnachip.com

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Magnachip Semiconductor Corp.

About

Magnachip Semiconductor Corp.

MX

Frequently asked questions

Is Magnachip Semiconductor Corp. MX stock halal to invest in?

How often is Magnachip Semiconductor Corp. MX reviewed for Shariah compliance?

Does Magnachip Semiconductor Corp. MX pass the AAOIFI Non Permissible Income criteria?

Does Magnachip Semiconductor Corp. MX pass the AAOIFI Interest Bearing Investments criteria?

Does Magnachip Semiconductor Corp. MX pass the AAOIFI Interest Bearing Debt criteria?

What is the dividend purification factor for Magnachip Semiconductor Corp. MX stock?

Does Magnachip Semiconductor Corp. MX pass the AAOIFI Preference Share screen?

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