Το μικροτσίπ είναι μικρό.

το is the definite article, meaning the.

Here it is:

• neuter
• singular
• nominative

It matches μικροτσίπ, which is treated as a neuter singular noun.

So:

• το μικροτσίπ = the microchip

Greek uses articles very regularly, so you will often see a noun with its article.

In Greek, every noun has a grammatical gender: masculine, feminine, or neuter.

μικροτσίπ is a borrowed word, and in Modern Greek many borrowed technical words are treated as neuter, especially when they do not fit older Greek noun patterns neatly.

You can tell its gender from the article:

• το μικροτσίπ → neuter

So the article is your best clue.

Because it is an adjective agreeing with a neuter singular noun.

The adjective μικρός means small, and its forms change by gender:

• μικρός = masculine
• μικρή = feminine
• μικρό = neuter

Since μικροτσίπ is neuter singular, the adjective must also be neuter singular:

• Το μικροτσίπ είναι μικρό.

είναι is the present tense form of είμαι = to be.

Here it means is.

A useful thing to know: είναι is used for both:

• he/she/it is
• they are

So Greek does not distinguish is and are in this form the way English does.

Because Greek often drops subject pronouns when they are not needed.

English needs:

• It is small.

Greek often just says:

• Είναι μικρό. = It is small.

And in your sentence, the subject is already named:

• Το μικροτσίπ είναι μικρό.

So there is no need to add a separate word for it.

It is in the nominative.

After είναι, a predicate adjective usually agrees with the subject in:

• gender
• number
• usually case as well

So in this sentence:

• το μικροτσίπ = nominative neuter singular
• μικρό = nominative neuter singular

That is why the forms match.

It is an adjective.

It describes the noun μικροτσίπ:

• the microchip is small

If it were an adverb, it would describe a verb, like runs quickly in English. That is not what is happening here.

So μικρό is a predicate adjective after είναι.

The given order is the most neutral and natural one for a simple statement:

• Το μικροτσίπ είναι μικρό.

Greek word order is more flexible than English, so other orders are possible for emphasis, for example:

• Μικρό είναι το μικροτσίπ.
  This puts extra focus on small.

But for a learner, the sentence as given is the best basic pattern:

• article + noun + είναι + adjective

Roughly:

to mi-kro-TSIP EE-ne mi-KRO

A few pronunciation points:

• τσ sounds like ts in cats
• ει is pronounced ee
• the accent mark shows which syllable is stressed

So:

• μικροτσίπ → stress on the last syllable
• είναι → stress on the first syllable
• μικρό → stress on the last syllable

Because Greek spelling marks the stressed syllable with an accent.

So:

• μικροτσίπ is stressed on τσίπ
• μικρό is stressed on the last syllable
• είναι is stressed on the first syllable

This may feel unusual to an English speaker, especially with a borrowed word like microchip, because Greek assigns stress according to its own pronunciation system.

They look related, and historically there is a connection through the element μικρο-, which comes from Greek μικρός = small.

But in this sentence they function differently:

• μικροτσίπ is a single noun meaning microchip
• μικρό is the normal adjective meaning small

So even though they look similar, you should learn:

• μικροτσίπ as a vocabulary item
• μικρός / μικρή / μικρό as an adjective pattern

In standard Greek, normally no. You usually keep είναι in this kind of sentence.

So the normal full sentence is:

• Το μικροτσίπ είναι μικρό.

Greek can omit some things, especially subject pronouns, but not usually the verb to be in a basic statement like this.