On-chip vs Off-chip

The On-chip components are the components built on the chip (IC) itself, i.e on the same silicon substrate like transistors, resistors, capacitors, coils ... etc. An On-chip component can provide good matching (can achieve accurate ratios between values) and doesn't consume size (not bulky) and reduces connections required on the PCB.

The Off-chip components are discrete components that are not built on the chip. Usually, off-chip components are used for coils, capacitors, and resistors of hight values that are impractical to implement on the chip or for components are required to operate at higher voltage level and power that the chip can handle.

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