Without getting to in-depth, essentially "sidedness" is at work. For instance, 1MB, 4MB, and 16MB SIMMs are single-sided, while 2MB, 8MB, and 32MB SIMMs are double-sided. Since the ChipRAM slot expects 2MB (and addresses that much at most,) any double-sided SIMM should work, and larger capacities will be seen as only 2MB.
Even though physically some 8MB and 32MB sticks are single-sided, they are still double-sided logically.