How does a computer chip work?

A computer chip (integrated circuit) contains millions or billions of tiny transistors etched into silicon. A transistor is a semiconductor switch: each can be on or off (representing binary 1 or 0). By wiring transistors into logic gates (AND, OR, NOT, etc.), the chip performs basic operations. These gates are combined into larger units (adders, memory cells, etc.). When powered, transistors rapidly switch states according to input signals and clock cycles. Thus the chip processes binary data in parallel billions of times per second. In sum, a chip works by using electronic switches (transistors) to carry out arithmetic/logical operations defined by its circuitry – executing computer instructions at incredible speed.