It is a microprocessor that integrates with system hardware on a gateway to perform crypto operations, such as key generation, key storage and protects small amounts of sensitive information, such as passwords, measurement data for boot software and cryptographic keys to provide hardware-based security.
TPM is often built into a system to provide hardware-based security. It is a combination of hardware and software to protect credentials when they are in unencrypted form. TPM is based on a trusted execution environment (hardware root of trust) that provides secure storage of credentials and protected execution of cryptographic operations. It is isolated from the main CPU and implemented either as a discrete chip, a security coprocessor or in firmware.