The most common and most likely answer to this crossword clue is the 9 letter word SPLINTERS
I've seen this crossword clue in The Daily Telegraph
S
P
L
I
N
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S
Buddy explains!
The straight part
We know that "Separates/chips" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case separates/chips = splinters.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does SPLINTERS mean?
SPLINTERS noun- A long, sharp fragment of material, often wood.
- A group that formed by splitting off from a larger membership.
- A double-jump bid which indicates shortage in the bid suit.