A connection chip is a type of technology made with small connection magnets. It is common for these to be placed in the collars of pets. An owner with a connection chip collared pet would have a device similar in shape to a remote control or phone. This device is called a Pet Locator. The Pet Locator has a short rod at one end that has some other connection magnets at the tip. It also has a little screen on it that has a compass that points in the pet's direction. The screen will also go from blue to red depending on how close to the pet the owner is.
With this device, the owner can find their pet if the pet happens to run away or get lost in some way. It has in most cases helped the owner to retrieve the pet.
Connection chips are also used as tracking devices which can surreptitiously be attached to vehicles or people before they make an escape.