The announcement comes the day before Chinese President Xi Jinping and US President Donald Trump meet in Florida.
Taiwan has never built its own submarines before. The new diesel-powered additions will go towards upgrading its ageing foreign fleet.
"In our indigenous submarine project, we hope to be able to make eight submarines," said Lee Tsung-hsiao, navy chief of staff, after a report on the project was presented at a legislative hearing.
Last month, Taiwanese President Tsai Ing-wen expressed a need for upgrading defences while on a tour of part of the fleet.
"Strengthening underwater combat capabilities is most needed for Taiwan's defence," she said.
China regards democratic Taiwan as part of its territory, and has never renounced the threat of taking it back by force.
Taiwan's defence minister has accused China of having more than 1,000 missiles pointed at the island. (end of excerpt)
Click here for the full story, on the BBC News website.
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