Known as Han Kuang, or "Chinese Glory", the exercises reflect Taiwan's concerns over Beijing's growing military clout.
China has threatened to use force against Taiwan - which it regards as a "renegade province" - if it formally declares independence from the mainland.
Taiwan split from mainland China following the end of the civil war in 1949 and the retreat of Nationalist forces to the island.
Since then both sides have lived in a state of constant military readiness.
The exercises come less than a week after the crash of an ageing 1970s era F-5F jet left four servicemen dead, including two visiting soldiers from Singapore.
That incident followed the crash of a Vietnam War-era army helicopter in April that killed eight personnel.
The crashes have raised concerns over the age and maintenance of Taiwan's military aircraft.