The Chip

The chips are a pieces of technology that was inserted into the residents of Memeton's brains. It is currently unknown how the citizens received these chips but it has been implied that Bex Rejects is behind it as he is the only one who is (canonically) aware of them.

The chips started malfunctioning because of the destruction of Bex's home, which caused intense headaches and nausea.

The original, malfunctioning chips were unintentionally extracted by Lewp while he was Bex in The Body Swap episode. He was unaware of what the file meant on Bex's work desktop and deactivated them. By doing this, he actually assisted him. This allowed Bex to be able to reinsert brand new chips, all he needed was the pieces left at Aythmoore Labs to construct brand new ones.

Bex collected these pieces by sneaking into Aythmoore Labs (with Rox but she was unaware of what was happening as Bex would collect the parts while Rox was distracted).

Bex has since inserted brand new chips, once again unknown to the other characters.

We are also currently unaware of the reasoning behind these chips.

IMPORTANT NOTE: Early mentions by other characters about the existence of the chips are no longer cannon as it originated from a quick joke about how it is behind in-game communication, which is obviously not the case anymore.