The development of the project was funded by Bill Gates.
The company says it will begin 'pre-clinical testing' of an implant which can dispense the right amount of chemicals to provide contraception for 16 years.
The device measures 20 x 20 x 7mm and dispenses 30 micrograms a day of levonorgestrel.
'Precise, long- term drug delivery can be achieved by using individual microreservoirs to store and hermetically protect the drug, microchip activation to release the drug, and telemetry to both control and communicate release,' says MicroCHIPS.
The chip can be turned on and off by wireless signals.
The technique has also been tested on people with osteoporosis.
The levonorgestrel is kept in 6000 micro-reservoirs sealed by a titanium and platinum seal.
Passing an electric current through the seal from an internal battery melts it temporarily, allowing a small dose of the hormone to diffuse out each day.
The device can be implanted in 30 minutes under local anaesthetic.
MicroCHIPS hope to get the contraceptive device on the market in 2018.