The game has storage limits for the chips used. Fortunately, the game allows you to freely install and remove your chips, so you can manage them on an ongoing basis. All other chips in the inventory remain inactive. You can only benefit from the bonuses to statistics and new abilities from those chips that are currently installed. make you temporarily invincible after taking damage). increase your melee weapon damage), as well as add new, automatic passive abilities (e.g. They can increase some of your character's current stats (e.g.
Chips in NieR Automata can most simply be defined as passive skills.