High efficiency and high automation are essential in the process of metal cutting. How to control the chip will affect processing quality, cutting tool life and productivity greatly. With the development of machine vision technology, A set of machine vision detection system is developed for realizing image processing, image pattern recognition and parameter database in this paper. Especially, Improved Canny Arithmetic Operators and dynamic template is designed to match the complex chip. In this system 9 LabVIEW is used as system platform, PCI - 1422 picture capture card of NI cooperation is used as image capture hardware, LED of CCS cooperation is used as light source. The actual operation shows that this system can identify typical C shape chip and spiral shape chip. Meanwhile, the other functions are developed, such as parameter optimization and network transmission.