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How do I use it? I do not understand how to use it.

joseph222 wrote:How do I use it? I do not understand how to use it.

It's meant to be used with Combinators. You can do a lot of fancy stuff that way, and there are numerous threads here on Combinators and their many uses. Smart Chests are basically Steel Chests (with 3/4 the health) that can accept Green Wire and Red Wire Connections and give signals on the circuit network based on what's in them.

The simple example would to collect 23 iron ore in a chest. The smart chest is connected with a red signal wire to the smart inserter. The smart chest will broadcast its content to all connected devices, in this example the smart inserter. On the smart inserter the circuit network condition is set: iron ore < 23, when their are less then 23 iron ore in the chest the smart inserter starts inserting iron ore in to the chest, when 23 or more iron ore is in the chest the smart inserter stops.

In this topic there is advanced example smart chest implementation.