Chip color shows how much heat goes into the chip. With carbide in steel, straw to blue chips usually mean the speed is right and heat is leaving with the chip instead of going into the part or tool. With high-speed steel tools, blue chips mean the edge is running too hot and will soon fail. Black chips mean too much heat for almost any tool.
Chips are coming off nice and blue with the carbide, that's right where it wants to be, leave it.
Related terms
SFM
Surface feet per minute: how fast the cutting edge moves across the work, the basis for spindle speed.
Feeds and speeds
The spindle speed and feed rate chosen for a cut, set from material, tool and machine.
HSS
High-speed steel: the tough, hand-grindable tool steel used for drills, taps, lathe bits and some endmills.
Insert
A small replaceable carbide or ceramic cutting tip clamped in a holder, indexed to a fresh edge when worn.