A chipset is a collection of electronic components that manage data flow between the processor, memory, and other peripherals in a computer or device. It acts as a communication hub, ensuring that different parts of the system work together efficiently. Chipsets are crucial for determining the capabilities and performance of a device, influencing factors like speed and connectivity. Typically found on the motherboard, a chipset can support various features such as USB ports, graphics cards, and storage devices. Different chipsets are designed for specific types of processors, like those from Intel or AMD, and can dictate compatibility with certain hardware and software.