This can have lots of meanings, but, in the computer-chip world, it refers to parts of a chip design that have been built and optimized by one company, which then sells them to other companies that don’t want to design those blocks themselves. They’re not selling actual chipsAn electronic device made on a piece of silicon. These days, it could also involve a mechanical chip, but, to the outside world, everything looks electronic. The chip is usually in some kind of package; that package might contain multiple chips. "Integrated circuit," and "IC" mean the same thing, but refer only to electronic chips, not mechanical chips.; they’re selling the design of a block that will be used within a chip.
Inside the Internet of Things - Bryon Moyer Blog