In the UK chips are similar to French Fries (but better).
In the USA chips are crisps, made by companies like Walkers, or Lays.
Fried can mean to be cooked by being fried in fat, but it can also mean that something isn't working due to hardware failure.
And of course a chip can be what runs your computer. This one is no longer functional, but Gremlin Gummy got a bit confused when I told him it was a fried chip.