AU Optronics chairman Lee Kun-yao has warned that the appreciating NT dollar could kill off Taiwan's panel makers.

TV panel prices are falling at the same time as the New Taiwan dollar has shot up. While signs of a pick up in panel demand started to emerge last month, AU Optronics sales last month dropped 16.95 percent from November. Chunghwa Picture Tubes saw its sales fall 8.77 percent and those of HannStar Display were 2.29 percent lower than a month earlier.

AU Optronics, the nation’s second-largest LCD panel maker told the Taipai Times that things could get worse. Much of it all depends on how the manufactuers can hedge against foreign exchange losses this year. All this was coming as the Taiwan manufactures face stiff competition from South Korean rivals.