Need help with chips

Good day to all. I’m new to nier automata. so far I’m loving the game currently I’m at level 16 one thing I don’t understand is these chips/ plugin chips & diamonds and random stuff 2b collects on different locations what am I supposed to do with all that? I tried looking up on the internet but couldn’t able to find a straight answer. I have so many chips and random stuff in my inventory am I suppose to use them before a fight to improve the battle I’m about to begin or after I collect things do I have to go to skills and upgrade 2b ? I’m sorry if this question is answered before if so please comment me a link for me to read thank you all.