Adorable, reminds me of Chip and Dale and the tea cup from Beauty and the Beast but I'd only use it for a pet, though it sounds horrible on an actual human being.
I don’t think Chip would be a good nickname for Charles. Just like Chaz, it would be a cute nickname for a guy named Charles who is getting joked around or teased. I would use them as nicknames for Charles, but rarely! Charlie is a good short form for Charles. Though Charles has only one syllable and Charlie has two syllables, so it’s Charles as a nickname for Charlie, ha ha ha ha ha ha ha, lol lol lol!
I have a friend called Chip, who is 12 years old and he likes his name, even though he wishes it was Willard. Don't pay attention to the anonymous comment next to this one about the potato. CHIP is a mostly cute and adorable name and you can boo-hoo all you want to.