Chip is, as the name describes, a yellow potato chip. His shape resembles that of a Pringle.
Role in episode
After SpongeBob decides to live indoors forever, he chooses Chip as one of his new friends. SpongeBob throws Chip to the door to escort Sandy and Patrick out, somehow opening the door. Patrick thanks Chip before leaving. When SpongeBob goes outside to save Sandy and Patrick from the Gorilla, Gary eats Chip.