Today is Katakana Tuesday and today’s word is チップ.
If it is transliterated into Hiragana, it is ちっぷ, so it is logical to think it means “chip” and it can be used that way if you are talking about electronics and/or tools.
However, if you say チップ out of the blue, most Japanese people will think of a “tip” you give when you receive a service. As we don’t have a custom of giving and receiving tips in Japan, most Japanese people find it hard and awkward to give tips in restaurants and hotels. In reverse, if you are planning to go to Japan, you don’t need to worry about giving “tips” on most occasions.
By the way, “chips” in Australia (I believe it is the same in the UK) are usually called フライドポテト (huraido poteto / fried potato) in Japanese. Things sold as ポテトチップス (poteto chippusu / potato chips) are what we know in Australia as “potato crisps.”