The U.S. has placed major chip export restrictions on Huawei and Chinese firms over the past few years. This has cut off companies' access to critical semiconductors.
Taiwan has added China's Huawei and SMIC to its trade blacklist in a move that further aligns it with U.S. trade policy and comes amid growing tensions with Beijing.
The two leading Chinese chip firms have been put on Taiwan's "Strategic High-Tech Commodities Entity List," along with many of their international subsidiaries.
Taiwan's current regulations require licenses from regulators before domestic firms can ship products to parties named on the entity list.
In a statement on its website, Taiwan's International Trade Administration said that Huawei and SMIC were among the 601 new foreign entities, blacklisted due to their involvement in arms proliferation activities and other national security concerns.
Huawei and SMIC are also on a U.S. trade blacklist and have been impacted by Washington's sweeping controls on advanced chips. Companies such as contract chipmaker Taiwan Semiconductor Manufacturing Co already follow U.S. export restrictions.
However, the addition of Huawei and SMIC to the Taiwan blacklist is likely aimed at the reinforcement of this policy and a tightening of existing loopholes, Ray Wang, an independent semiconductor and tech analyst, told CNBC.
He added that the new domestic export controls could also raise the punishment for any potential breaches in the future.