What is the relationship between wafer and chip?

Chip, also known as microcircuit, is a general term for semiconductor component products. It refers to a silicon chip containing an integrated circuit. It is small in size and is often a part of a computer or other electronic equipment. Wafer refers to the silicon wafer used in the production of silicon semiconductor integrated circuits. Because of its circular shape, it is called a wafer. Silicon wafers are processed to form wafers, which are then packaged to form chips.