One of the neat things about particleboard is that it uses materials that would otherwise be thrown away!
The particles that make up particleboard are called mill residues. Mill residues are just pieces of wood leftover from wood processing.
Sawdust, wood chips, and wood shavings are examples of mill residues and can all be used to make particleboard.
Mill residue can come from sawmills or chip mills. Here's a picture of some particles used to make particle board; you can click on the picture to get a closer look:

Now let's take a closer look at how particle board is made...
The particleboard making process