China’s display panel makers are feeling the pinch as production is disrupted by the coronavirus epidemic, fueling expectations of an industrywide shakeup.

Supply chains are under pressure after the extended Lunar New Year holiday and delays in material deliveries because of transport restrictions, said Liang Xinqing, an expert at the China Optics and Optoelectronics Manufacturers Association.

Smaller companies are particularly hard-hit, Liang said. The virus outbreak will speed up a restructuring that will force out less competitive players, Liang said.

Wuhan, the epicenter of the outbreak, is a main manufacturing hub for display panels, with factories run by leading industry players including BOE Technology Group Co., TCL Corp. and Tianma Microelectronics Co.

Many of the manufacturers have been hit by supply shortages since Wuhan was locked down Jan. 23 for disease control. TCL said in a filing during the weekend that while part of its factories in Wuhan are operating normally, production may be interrupted because of delayed supplies of raw materials and logistics constraints. Tianma said Monday that its plant in Wuhan faces pressures from the delayed return of workers and supply interruptions.

Chen Hui, general manager of market research institute AVC Revo, said China’s display panel production will decline 10% in February because of coronavirus disruptions.

Contact reporter Han Wei (weihan@caixin.com)