How do we handle a component price rise (GaN IC, PD controller) after the PO is signed?

Main answer · Wecent Editorial Team

Short answer: First read what the purchase order says about price. If the price is fixed and the order is confirmed, the factory has no automatic right to raise it. Ask for evidence of the cost increase, look at alternatives such as a split of cost or a quantity change, and never accept an unapproved substitute part as a way of absorbing the cost.

Check the contract

• Is the price fixed for the order, or does it follow a price-adjustment clause?
• Is there a validity date, an index or a trigger that allows change?
• Has the factory already bought the parts? If so, the price rise may not apply to this order.

Ask for evidence

Request supplier quotes, invoices or distributor price lists that show the cost change and the date. A genuine rise is easy to document. A vague claim that “everything went up” is not enough.

Separate real costs from negotiation

Factories sometimes raise prices to improve their margin. Compare with market information and with other factories’ quotes. Check whether the part is in short supply or a more expensive version is being offered.

Options to consider

1. Hold the price. If the order is firm, refuse and offer to discuss future orders.
2. Share the increase. Agree a split if the rise is documented and large.
3. Change quantity or timing. A larger order or a later delivery can offset cost.
4. Approved alternative part. Accept an alternative only after your team has seen the datasheet, test results and certification impact.
5. Cancel. If the factory will not honour the order, review your cancellation rights.

Do not accept silent substitution

A cheaper part swapped in without notice can change safety, efficiency and certified construction. Tell the factory in writing that substitutions need approval.

Protect future orders

Add a price clause to the next contract: a fixed period, a trigger and an evidence rule. Put the critical component list in the agreement so changes are visible.

Keep records

File the emails, the evidence and the agreed outcome with the order.

What to say to the factory

Keep the tone factual: you accept that real cost changes happen, you need evidence, and you want to protect the delivery date. Ask them to propose options in writing rather than state a new price. This keeps both sides focused on a solution and gives you a record if the issue goes further.

Where this answer says to confirm with Wecent, the detail is not published on the product page and has to come from the datasheet or the factory. General facts come from the regulators, standards bodies or device makers named in the text.