ASIC = Application Specific Integrated Circuit. This is a chip that is made for a specific application, which is often done to consolidate many chips into one package, reducing system board size and power consumption. ASIC Chip = Application Specific Integrated Circuit Chip. Sometimes means microprocessor chips which do specific tasks; example: an ASIC chip might be responsible for a graphic display. Chip = An integrated circuit. The physical structure upon which integrated circuits are fabricated as components of telephone systems, computers, memory systems, etc.