Chips vs wafers vs transistors
WAFER A thin slice of silicon crystal. Typically ~1mm thick and 200-300mm in diameter. (The size of a medium to large pizza.) We put wafers through hundreds of processing steps to produce....
CHIPS or Integrated Circuits.  A small rectangular section of the wafer that contains a complete circuit which is used to make computers, phones, etc. Each chip or IC contains thousands, millions or billions of....
TRANSISTORS which are the basic building-block of modern integrated circuits. Modern transistors are much smaller than a human hair and can only be seen under a strong microscope. This photo shows a wafer with hundreds of chips before being sliced apart.  A few packaged ICs are sitting on top of the wafer.




When the wafer processing is completed. The individual chips are cut out of the wafer and individually packaged. Then these IC packages are soldered onto....


PCB or Printed Circuit Board is a thin piece of fiberglass with copper patterns etched on both sides. This photo shows a typical PC board (green) with the copper traces (wires) and several different kinds of electronic components (including integrated circuits) soldered onto the board




Video: https://www.youtube.com/watch?v=Q5paWn7bFg4
PDF: http://download.intel.com/newsroom/kits/chipmaking/pdfs/Sand-to-Silicon_32nm-Version.pdf