The Phychip project is a collaborative European research initiative to design and implement computation using the organism Physarum polycephalum; it is funded by the Seventh Framework Programme (FP7) by the European Commission within CORDIS and the FET Proactive scheme. Included in this presentation are details the development of a Physarum based biosensor and biological logic gate, offering significant advancements in the respective fields. The work demonstrates the first steps towards Physarum computation and practical Physarum Biosensor; subsequent work will focus on development of a hybrid electronic-Physarum device capable of implementing computation.