1. To take a nap or sleep, most commonly during the middle of the day or some non-standard time during which people normally would not be sleeping.
2. For an item, or sometimes a service provider, to fail.
The term originates from the term "spic," used as an epithet referring to Hispanic people. The first definition builds on the stereotype of laziness and from the common practice of mid-day siestas in Mexico and other countries. The second term also refers to the stereotype, and its context is borrowed from the Spanish language's construction of one having an item described as taking action rather than the party using it (e.g. in Spanish you'd say something like "The glass broke itself on me" rather than "I broke the glass").
1. "It may just be after lunch, but I'm really tired. I'm going to go spic out for a few hours"
2. "My laptop spicced out on me, so I have to take it to a repair shop now."