Actual size is about quarter of an inch wide. Each transistor is around a millionth a metre across. This is called a micro-meter. Hence the name, micro-chip. It comes from the size of the transistors.. The transistors are now much smaller than in this old 1980s chip. They are now about 1/1000,000,000 of a metre across - a nano-meter. Hence also the rise of the word nano-technology as we are now able to construct things this small. The driving force for the chip industry is to make smaller and smaller chips. The transistors are now getting close - about 10 times bigger, than a single atom.. ish.. In their current form, this is close to the limiting size of tranistors...
Ok, enough of this technical stuff. Lets use a micro-chip...

Integrated Circuits, or ICs, or Chips are lots of transistors and other components all joined together on a single piece of silicon. They are called integrated, because they have all the circuit components joined or integrated together on the chip of silicon.
And because there are many different circuits that you could design, there are many different types and designs of chips. In fact, the number is growing daily, and by now there are millions of designs.
Each design needs its on data sheet on what the circuit is inside the chip. It also needs to describe how to connect to it.
When you look at a chip, you do not how to connect to it unless you know which one it is, and you have read and understood the data sheet. Some data sheets are over 1000 pages long.
So although these devices all have a common name – chip – there are many many different types, doing lots of different functions.
The phrase - computer chip – means only a very general thing. To electronic engineers, they need to know its model number and use its data sheet to know how to design circuits around it.
The first Integrated Circuit chip we will use is called a 555 timer. We can use this chip to easily make a flashing LED. Flashing LEDs are common in lots of things from toys to phones to cars to planes.
So, how do we make something flash? We need two things – something to time how long the LED is off, and something to time how long it is on.
The 555 timer has all this circuitry inside it, integrating lots of transistors inside it to make the timers. Below is the circuit inside the chip. This is a very simple chip compared to almost all other ones these days. But it is very complicated compared to all the other circuits we have made earlier. All these components take up a space less than 1mm x 1mm. The package we connect to is much bigger to protect the chip, and make it easy to connect and solder to.

So to connect to the chip, we do not have to know all the details inside. The manufacturer of the chip gives us information on how to connect to it with examples and values.

Above is the information from the manufacturer on how to make an oscillator. We can use this circuit to make an LED flasher.
Below is a conversion of the circuit above to one we can wire using croc leads. You have to be very careful when connecting the leads to the chip, as the chip is really designed to be soldered onto a circuit board.
Make sure none of the croc leads touch each other. You can bend the legs of the chip a bit to make it easier to connect. Connect the battery last to make it safe as you wire up the rest of the circuit. Take your time..

Connect the white croc leads to the LED, capacitor and the chip. Note which leg goes where.

Connect the green croc leads to the resistors and the chip.

Connect the two yellow leads. From the capacitor to the chip. From the resistors to the chip.

Connect the black croc leads to the battery, chip and capacitor.

Connect the red leads to the battery +, the resistors and the chip. Connect the battery last to make it safe as you wire up the rest of the circuit.
The LED will start flashing if you have connected everything correctly.
If the circuit does not work, check every lead is connected correctly.
It is very common for circuits not to work the first time - the reason is nearly always because they have not been connected up correctly. Occasionally there is a broken component, but this is very rare.
So check your circuit carefully.