I believe what you are referring to is the QR code and not a chip. This is a series of dots and spaces in the shape of a square and it is easily read by an automated scanner (like on smart phones or automated manufacturing line). A lot of manufacturers are doing it these days; I have seen it on a few. The purpose of it is simply for easier inventory control. A computer reads these faster than reading numbers, plus they can contain more information than just a serial number, such as a link to the company website.

Gregory, it is a QR Scan code for easy inventory control. Smith and Wesson has been doing this for a while, from at least 2013 : http://smith-wessonforum.com/smith-wesson-m-p-pistols/329972-qr-code-my-new-shield-9-a.html

Where did you see it?

Gregory, Shannon hit it right on the head. The so called chip is just a QR code stamp. It is a form of marketing and information. No tracking capability on the QR code. Just info that can be scanned.

please post the link to where you saw this

never heard of this and think its a Tin foil hat. my new shield does not have a chip anywhere on it. I would call S&W and ask them By Telephone:
(USA) 1-800-331-0852
Mon-Fri 8:00AM-5:00PM Eastern Time