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SMD stands for Surface Mounted Device. IC stands for Integrated Circuit.
A surface mounted device can be any electronic component without wire leads that is soldered to only one side of a circuit board. The contacts on a SMD are generally metallic 'buttons', or flat metal strips sticking out from the edges or ends of the device. An integrated circuit can be a surface mounted device, and most often is.
An integrated circuit is a complete section of circuitry in a single package. IC's are often referred to as 'chips' because the package looks like a chip of plastic or ceramic.
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