Chip tuning is a process that involves modifying the software in a vehicle's engine control unit (ECU) to enhance performance. By adjusting parameters such as fuel injection, ignition timing, and boost pressure, chip tuning can increase horsepower and torque, improve fuel efficiency, and optimize overall engine performance. This modification is typically done using specialized tools and software, allowing technicians to upload new settings to the ECU. While chip tuning can provide significant benefits, it may also void warranties or lead to increased wear on engine components, so it's essential for vehicle owners to consider these factors before proceeding.