Is Silicon Motion Technology Corp. SIMO stock halal to invest in?

Yes, as of August 2026, Silicon Motion Technology Corp. stock (SIMO) is 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. Silicon Motion Technology Corp. currently passes all four AAOIFI financial screens: non-permissible income remains below 5% of total revenue, interest-bearing investments and interest-bearing debt each remain below 30% of market capitalisation, and the company has no impermissible preference share structure. The stock's current purification factor is 99.56%. Compliance is reassessed every month as updated screening data arrives, and a stock's status can change when new financial reports are released. You can always check the current status of Silicon Motion Technology Corp. and explore other Shariah compliant stocks in the Tabadulat app.

How often is Silicon Motion Technology Corp. SIMO reviewed for Shariah compliance?

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 reflects current financial data rather than an outdated assessment, and Tabadulat app users are notified if a holding in their portfolio becomes non-compliant.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

Yes, as of August 2026, Silicon Motion Technology Corp. stock (SIMO) 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. Silicon Motion Technology 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 Silicon Motion Technology Corp. SIMO pass the AAOIFI Interest Bearing Investments criteria?

Yes, as of August 2026, Silicon Motion Technology Corp. stock (SIMO) passes 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. This limit ensures shareholders are not materially profiting from riba (interest). Silicon Motion Technology Corp.'s interest-bearing investments are currently within the 30% threshold. Because the ratio is measured against market capitalisation, it can move with the share price as well as the balance sheet, which is why Tabadulat rescreens the stock every month.

Does Silicon Motion Technology Corp. SIMO pass the AAOIFI Interest Bearing Debt criteria?

Yes, as of August 2026, Silicon Motion Technology Corp. stock (SIMO) 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. Silicon Motion Technology 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 Silicon Motion Technology Corp. SIMO stock?

As of August 2026, the dividend purification factor for Silicon Motion Technology Corp. (SIMO) is 99.56%. Purification (tazkiyah) is the practice of donating to charity the portion of dividend income attributable to incidental non-permissible sources, typically interest earned on a company's cash, and AAOIFI methodology requires it even for fully compliant stocks. The purification factor is the figure halal investors use to work out that donation on Silicon Motion Technology Corp. dividends. It is recalculated with each monthly screening as new financial data arrives, and the Tabadulat app can help you calculate and track purification across your whole portfolio.

Does Silicon Motion Technology Corp. SIMO pass the AAOIFI Preference Share screen?

Yes, as of August 2026, Silicon Motion Technology Corp. stock (SIMO) 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. Silicon Motion Technology 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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Silicon Motion Technology Corp.

NASDAQ

Shariah-Compliant

Not Shariah

SIMO

About

Silicon Motion Technology Corp.

SIMO

Silicon Motion Technology Corp. American Depositary Receipt represents ownership in Silicon Motion Technology Corp., a leading developer, manufacturer, and supplier of semiconductor products. The company's primary focus is on controllers for NAND flash storage devices, which are integral components in products such as solid-state drives (SSDs), embedded storage solutions, and removable storage for mobile devices. Silicon Motion Technology serves a broad base of clients across the electronics, computing, and mobile industries, providing critical storage technology that powers data storage in consumer electronics and enterprise applications. The American Depositary Receipt structure allows investors to access and trade shares of Silicon Motion Technology on international markets in a more accessible form. This asset plays a vital role in the global advancement of semiconductor and memory technologies, offering solutions that address escalating demand for high-performance, reliable storage in an increasingly digital world.

Sector:

Technology

Industry:

Semiconductors

Employees:

1819

Website:

https://www.siliconmotion.com

SIMO

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Silicon Motion Technology Corp.

About

Silicon Motion Technology Corp.

SIMO

Frequently asked questions

Is Silicon Motion Technology Corp. SIMO stock halal to invest in?

How often is Silicon Motion Technology Corp. SIMO reviewed for Shariah compliance?

Does Silicon Motion Technology Corp. SIMO pass the AAOIFI Non Permissible Income criteria?

Does Silicon Motion Technology Corp. SIMO pass the AAOIFI Interest Bearing Investments criteria?

Does Silicon Motion Technology Corp. SIMO pass the AAOIFI Interest Bearing Debt criteria?

What is the dividend purification factor for Silicon Motion Technology Corp. SIMO stock?

Does Silicon Motion Technology Corp. SIMO pass the AAOIFI Preference Share screen?

How do I buy Silicon Motion Technology (SIMO) stock?

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