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What does word "chip" (in line 7, word 3) contain the meaning, is it ROM chip or PROCESSOR chip or RAM chip or CMOS chip. Please help me understand.

When you turn on your PC, the processor attempts to begin the process of processing data. But, since the system memory is empty, the processor doesn't really have anything to execute, or even begin to know where to look for it. To ensure that the PC will always boot regardless of the BIOS code, both chip and BIOS manufacturers developed their code so that the processor, once turned on, always starts executing at the same place, FFFF0h.

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In this context, "Chip" is a reference to the ROM where the BIOS is stored (though a sloppy one, please don't refer to it as such in your own writings. As you have realized, specificity is better.)

The only part that should care about the initial instruction condition is the BIOS (which, in turn, calls on everyone else you mention). Since the BIOS is code, the "chip" is the ROM on which it is stored.

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