Magnetic chips are small plastic disks with a thin magnet wire around them. My curious kids easily ripped the wire off a few chips with their fingernails. When we first received the set, some of the wires were punctured. The magnets work great with the items included in the set. Please note that the magnets are not readily compatible with ADDITIONAL items NOT included in the set. Magnets didn't always pick up metal objects like large paper clips, nuts, and bolts that were heavier than the magnetic plates that came with them. Small paperclips worked better. The magnets stuck to a small die-cast metal toy car, but it was impossible to lift. It's also worth noting that our kids were a bit confused because the plastic chips were magnetic but the plastic water bottle cap was not. We sang Daniel Tiger's Neighborhood song "You Have to Look to Find What You Want to Know" and then they noticed that the plastic chips had something very similar to little paper clips. It was a great experience for the children.
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