chip: [OE] Old English cipp meant ‘share-beam of a plough’ (a sense paralleled in related forms in other Germanic languages, such as Dutch kip ‘plough-beam’ and Old Norse keppr ‘stick’). This seems a far cry from the modern use of chip, for which there is no evidence before the 14th century, and in fact our noun chip may be a new formation based on the verb chip, which goes back to Old English -cippian ‘cut’ (found only in compounds).
Here again, though, the record is incomplete; for the post-Old English verb does not turn up until the late 15th century, and then in the very specialized sense ‘cut the crust off bread’. The more general meaning ‘cut’ appears in the 17th century, but the modern ‘break off a small fragment’ is as late as the 18th century. All in all, a picture confused by lack of evidence. But probably the basic etymological sense that underlies all later usage is ‘cut off’ or ‘piece cut off’ (the early noun senses representing ‘branch or bough cut off a tree’). ‘Small piece of fried potato’ dates from the 1860s. (Old French borrowed the word as chipe, and a variant of this, chiffe ‘rag’, is the ultimate source of English chiffon [18].) => chiffon
early 15c., "to chip" (intransitive, of stone); from Old English forcippian "to pare away by cutting, cut off," verbal form of cipp "small piece of wood" (see chip (n.)). Transitive meaning "to cut up, cut or trim" is from late 15c. Sense of "break off fragments" is 18c. To chip in "contribute" (1861) is American English, perhaps from card-playing. Related: Chipped; chipping. Chipped beef attested from 1826.
Old English cipp "piece of wood," perhaps from PIE root *keipo- "sharp post" (cognates: Dutch kip "small strip of wood," Old High German kipfa "wagon pole," Old Norse keppr "stick," Latin cippus "post, stake, beam;" the Germanic words perhaps borrowed from Latin).
Meaning "counter used in a game of chance" is first recorded 1840; electronics sense is from 1962. Used for thin slices of foodstuffs (originally fruit) since 1769; specific reference to potatoes is found by 1859 (in "A Tale of Two Cities"); potato chip is attested by 1879. Meaning "piece of dried dung" first attested 1846, American English.
Chip of the old block is used by Milton (1642); earlier form was chip of the same block (1620s); more common modern phrase with off in place of of is early 20c. To have a chip on one's shoulder is 1830, American English, from the custom of a boy determined to fight putting a wood chip on his shoulder and defying another to knock it off. When the chips are down (1940s) is from the chips being down on the table after the final bets are made in a poker match.
