# Potential of Homomorphic Encryption for Cloud Computing Use Cases in Manufacturing
## 4 Use Cases for Homomorphic Encryption for Cloud Computing in Manufacturing
### Contract Manufacturing for Chipsets
If the chip designer has developed a new microchip and wants to request a quote from the contract manufacturer, it also homomorphically encrypts the design data and transmits it to the cloud. In the cloud, the data are then evaluated using the model, and a quotation is generated. The offer is initially also encrypted and is only decrypted by the chip developer after the transfer. In this way, both the chip developer's technology and the contract manufacturer's model remain secret before a contract is concluded between the two parties. This process takes place via the community cloud every time one of the companies has developed a new chip design and wants to initiate a new manufacturing order. The contract manufacturer can add new costing models as needed, expanding the ability to quote for additional chip types. An SWHE method is envisioned for the use case since the calculations necessary to determine quotation terms and manufacturing durations are known in advance. SWHE procedures only allow a limited number of different operations. The operations necessary for the calculation of the offer can be fixed in advance in such a way that an SWHE model can be used. Compared to FHE, this saves time and computing effort. Homomorphic encryption allows the bidding calculation to be performed without any prior legal assurance, as sensitive technology is not present in unencrypted form in the cloud. After the necessary data are entered by the contract manufacturer, the model calculates the offer including costs and delivery time, which represent the only information presented to the chip developer. For the chip developer, there is no risk of competition-critical chip design information being made public during the bidding calculation. Because of this, the additional work involved in bidding can be significantly reduced, and the duration of the bidding process can be reduced. In addition, the process also keeps the exact costing bases of the contract manufacturer secret since the model is also encrypted. The chip developer use case shows that a group of companies with similar needs can achieve efficiency benefits by using a community cloud. For example, a template is first generated by the contract manufacturer that provides information about all relevant data that must be available for quotation costing. The chip developers then must compile their data on the basis of the template, encode them homomorphically, and transmit them to the cloud. In the cloud, the same calculation process now takes place automatically for every request. In the process, competition-critical information remains secret from the other chip developers and the contract manufacturer, while ensuring fair bidding within the same constraints for all chip developers. The use of homomorphic encryption forms the basis for secure bidding and ensures that no competition-critical data can be made public. Without homomorphic encryption, it would not be possible to calculate a bid without lengthy legal safeguards in advance.