The 555 timer IC is a versatile integrated circuit that is commonly used to generate accurate time delays or oscillations. It operates on voltages between 5-18V and can source or sink 200mA of current. The 555 timer contains 25 transistors, 2 diodes, and 15 resistors on a silicon chip in an 8-pin package. It has three operating modes - astable, monostable, and bistable - and can be used for applications like timers, pulse generation, and flip-flops. The name '555' comes from the three 5kΩ resistors inside the chip.