A standard-sized plastic card that contains an integrated circuit or 'chip' which gives the card the ability to store and/or process data.
Chip cards are of three different kinds:
memory cards, which contain storage but no processing or significant security capabilities; smart cards, which contain a processor, systems software and applications software and permanent data engraved into non-volatile memory, and some (less expensive) volatile memory for use as a working storage area; and super smart cards, which are smart cards with a (very small) keypad and display.
The mainstream area of development of chip-cards is in smart-cards.