This paper describes to the best of our knowledge the first implementation of a Lithium Niobate based 8 bit electroded integrated optic waveguide fiber optic gyro chip referred here to as 'Digi-MIOC', which has been used in a Sagnac effect exploiting micro fiber optic rate sensor ((mu) -FORS) developed by LITEF. The paper highlights various features of a Digi-MIOC, such as design philosophy, fabrication aspects, and test procedures to evaluate static and dynamic characteristics of the electro-optic parameters. As a consequence of this work, it has been possible for LITEF to cost effectively mass produce Digi-MIOCs. When used in closed loop operation, the Digi-MIOC forms the key optical component of a (mu) -FORS to aid the required optical-to- electrical signal processing to give linear output for input rates of rotation. Various test results and features of LITEF's (mu) -FORS, such as small size, large rotation rate measurement potential, low drive power and high reliability are also highlighted.