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It's called timer because of its use in timer applications such as square wave generation ...etc.
And the name "555" is because of the three 5kOhms resistance in its input (check its internal block diagram)
electronics_kumar,
With few exceptions, there is no correlation between an IC's part number and it's function. Passive components such as resistors and capacitors frequently have the part's parameters embedded in the part number. For example, a QRX332V100J might represent a 3300pf 100V capacitor.
Regards,
Kral
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