If I lose my phone and mark it as lost can I clear all my info if I find it and then give it to a friend to use

I lost my iPhone and I marked it as lost on the find my phone app. Then I found my phone under my bed, but I have already purchased a new iPhone 14. I would like to gift the phone to my friend. Can I clear all of my info and then mark it as found in the app and give the old phone to a different person who has a different chip so that she can use the phone?can I take the chip out of my iPhone 6 and give it to somebody who has an iPhone chip but needs a phone?