Transmuter Chip is a quest item in Final Fantasy VII Rebirth. It is needed for the side quest “Where the Wind Blows” to complete the objective “Obtain the Transmuter Chip”.
Transmuter Chip Location: You will first need to complete 2 of the 6 Expedition Intel Lifesprings in Grasslands to reveal Expedition Intel 1: Bygone Settlement. The Expedition Intel gets marked on the map when activating Remnawave Towers, which are marked automatically on the map in Chapter 2 after meeting Chadley.
After completing two Expedition Intel, Chadley will mark the location for the Transmuter Chip at Excavation Intel 1: Bygone Settlement. Head to the location, it’s west of Bill’s Ranch.
Enter the search area and ride your chocobo. You’ll get blue question mark icons above your chocobo’s head when a treasure is nearby. Hold 
to make the chocobo sniff out the treasure, turn the right stick in the indicated direction (or just spin 360° while sniffing) to see a scent line. Follow the scent line to the end, then press 
to dig up the treasure. If there are obstacles such as walls in the way you’ll need to sniff again to see the rest of the scent line. There are 3 treasures total to dig up, one of them will be the Transmuter Chip. Then you can craft the Windmill Gear via the Transmuter Menu and continue with the remaining objectives of Side Quest: Where the Wind Blows. Also see Quetzalcoatl Talon location, which is one of the required crafting materials.
For more guides check out Final Fantasy VII Rebirth Wiki.
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