The Collaborative International Dictionary of English v.0.48:

Chip \Chip\ (ch[i^]p), v. t. [imp. & p. p. Chipped (ch[i^]pt);
   p. pr. & vb. n. Chipping.] [Cf. G. kippen to cut off the
   edge, to clip, pare. Cf. Chop to cut.]
   1. To cut small pieces from; to diminish or reduce to shape,
      by cutting away a little at a time; to hew. --Shak.
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   2. To break or crack, or crack off a portion of, as of an
      eggshell in hatching, or a piece of crockery.
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   3. To bet, as with chips in the game of poker.
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   To chip in, to contribute, as to a fund; to share in the
      risks or expenses of. [Slang. U. S.]
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The Collaborative International Dictionary of English v.0.48:

Chipping \Chip"ping\, n.
   1. A chip; a piece separated by a cutting or graving
      instrument; a fragment.
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   2. The act or process of cutting or breaking off small
      pieces, as in dressing iron with a chisel, or reducing a
      timber or block of stone to shape.
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   3. The breaking off in small pieces of the edges of potter's
      ware, porcelain, etc.
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WordNet (r) 3.0 (2006):

chipping
    n 1: the act of chipping something [syn: chip, chipping,
         splintering]