What Does Chip Mean?
In electronics, a chip is comprised of semiconductor material cut from a larger wafer of material that is only a few millimeters on one side. On this chip, a transistor or integrated circuit may be etched but only occupy one-thousandth of an inch of the chip’s surface.
Techopedia Explains Chip
Most of a chip’s integrated circuits contain digital logic functions. Some are analog-only, while others are mixed-mode analog and digital. Digital chips are used for computer processors, memory and other logic and information processing functions.