IPA: /ˈmaɪ.kroʊ.tʃɪp/
KK: /ˈmaɪkroʊˌtʃɪp/
A small piece of silicon that contains electronic circuits and is used in computers and other devices to perform various functions.
The new smartphone has a powerful microchip that improves its performance.
Microchip → It is formed from "micro-" (from Greek "mikros", meaning small) and "chip" (from Old English "cipp", meaning a small piece or fragment). The word "microchip" refers to a small piece of semiconductor material that contains integrated circuits.
Think of 'small' ('micro-') and a 'piece' ('chip') — a microchip is a small piece of technology.
No commonly confused words.