That's a switch chip - you use it for making an Ethernet switch, not for
communicating over Ethernet. (If you open up a simple off-the-shelf
4-port Ethernet switch, it will have a chip like that in the middle, and
no microcontroller.)
There are chips, or modules, that are made for adding Ethernet to
existing small microcontroller designs. There the chip (or module) has
the software to implement TCP/IP, and usually at least some of HTTP,
HTTPS, DNS, SMTP, etc., as servers and/or clients. The chip
communicates with the microcontroller by UART or SPI. The idea is that
as much as possible is handled on that chip, and the microcontroller is
only responsible for executing commands or returning data. You use such
devices when you have an existing design that you want to upgrade to use
Ethernet (or Wifi) but don't want to re-do the design using a more
powerful and modern device.
For a while, many years ago (maybe 15-20 years), there was a demand for
small microcontrollers with Ethernet support. At that time, 32-bit
devices and reasonable ram sizes were big, expensive, and hard to use -
so 8-bit and 16-bit devices were much more popular. There was a market
for such things with very limited and simple network communication -
things like embedded web servers where the page would fit within one
Ethernet frame so that you didn't need fragmentation, and where a TCP/IP
retry was handled by the application re-creating the dynamic page with
the old data because you didn't have enough ram do buffer anything. The
networking code was highly specialised and tied tightly to the
application code, because there were no resources for generalisation.
The PIC18 discussed here is from that era.
These days, you get 32-bit microcontrollers with plenty of flash and ram
and a 100 Mbit MAC for a fraction of the price of the PIC18. There are
off-the-shelf network stacks and plenty of examples around, and you have
enough power to have a web server, and a Modbus server, and telnet
servers, and SSL encryption and whatever else you may want for a useful
device that is suitable for today's networks.