Introduction:
A tiny piece of silicon that has electric circuits on it is commonly referred to as a "chip." Chips are widely used in various electronic devices, such as computers, smartphones, and tablets. They play a crucial role in providing the necessary functionality and processing power to these devices.

Explanation:
The term "chip" is a shorthand for integrated circuit (IC), which refers to a small electronic device that consists of several interconnected electronic components on a single piece of semiconductor material, typically silicon. The silicon material is chosen due to its excellent electrical properties and abundance.

1. Wafer:
A wafer is a thin slice of semiconductor material, usually silicon, on which multiple chips are fabricated simultaneously. Wafers serve as the base material for producing chips. The wafer is first processed to create a layer of silicon dioxide, which acts as an insulator. Then, a series of steps, including photolithography, etching, and doping, are performed to create the circuitry and components of the individual chips.

2. Chip:
Once the fabrication process on the wafer is complete, it is cut into individual chips. Each chip contains multiple electronic components, such as transistors, resistors, and capacitors, that are interconnected to form electric circuits. These circuits enable the chip to perform specific functions, such as processing data, storing information, or controlling other electronic devices.

3. Bit:
A bit, short for binary digit, is the smallest unit of data in computing and digital communication. It can have one of two possible values, typically represented as 0 or 1. Bits are the building blocks of digital information and are used to store and process data in electronic devices. While chips contain many bits, they are not explicitly referred to as bits themselves.

4. Memory:
Memory refers to the storage capacity of a computer or electronic device. It allows data to be stored and retrieved for later use. There are different types of memory, such as random-access memory (RAM) and read-only memory (ROM), which are commonly integrated into chips. These memory components enable devices to store and access data quickly and efficiently.

Conclusion:
In summary, a tiny piece of silicon that has electric circuits on it is commonly known as a "chip." It is the result of fabricating multiple electronic components on a wafer, which is then cut into individual chips. While chips contain many bits and can incorporate memory components, they are not explicitly referred to as bits or memory.