Step 1: Determine total bits required
\[
128 \text{ kB} = 128 \times 1024 \text{ bytes} = 131072 \text{ bytes}
\]
\[
\Rightarrow 131072 \times 8 = 1048576 \text{ bits}
\]
Step 2: Capacity of one chip
8 address lines $\Rightarrow 2^8 = 256$ addresses
4 data lines $\Rightarrow$ each address holds 4 bits
So, one chip can store $256 \times 4 = 1024$ bits
Step 3: Number of chips required
\[
\frac{1048576 \text{ bits}}{1024 \text{ bits/chip}} = 1024 \text{ chips}
\]