The exercise will be part of Taiwan's annual "Han Kuang" military drills, which start next week and aim to prepare the island's troops and civilians for a potential Chinese attack.
China insists Taiwan is part of its territory and has threatened to use force to annex the self-ruled island of more than 23 million people.
Beijing deploys warships, fighter jets and coast guard vessels around Taiwan on an almost daily basis to assert its claim of sovereignty, which Taipei rejects.
While Taiwan faces the constant threat of a Chinese invasion, Taiwanese officials have warned that Beijing could also impose a quarantine or blockade to stop energy and other supplies reaching the island.
As part of "anti-blockade" operations, Taiwanese naval and coast guard forces will "conduct maritime law enforcement, sea area patrols, route safety protection, and escorts for critical supplies" in the Western Pacific, Major General Lu Wen-yuan, a defence ministry official involved in operations and planning, told reporters.
"These will be conducted with live-fire drills involving actual troops and equipment... in order to strengthen various response capabilities and enhance the effectiveness of defensive operations," he said.
This year's "Han Kuang" will also assess "the capacity of mobilised factories to support wartime production" and test the "wartime relocation" of military and civilian factories.
Urban resilience drills will also be held during the August 5-14 military exercise as part of the government's efforts to prepare the entire island for a potential war or natural disaster.
Mobile internet speeds will be slowed for 30 minutes during air raid drills in central and northern regions, affecting more than 17 million residents, as the government seeks to expose ordinary people to communications disruptions.
This year's exercises come after China launched what it called "law enforcement" patrols in waters east of Taiwan last month, which Taipei has branded as "provocative" and "expansionism in disguise".
During the operation, the China Coast Guard for the first time radioed cargo ships passing Taiwan for information about their crew and destination.
Until June, the Chines coast guard's presence in the Western Pacific had been largely limited to participation in military drills around Taiwan.
A senior government official in Taipei said previously that China's aim was not only to disrupt shipping but to "prevent Taiwan from receiving supplies" by stopping commercial ships from entering its ports.