I did some digging around the interwebz and it seems that keys in the US market do not need chip, but Australia and other markets do.

In the US, if your key works everywhere except it won't turn in the ignition, you used a blank that cannot be fully inserted. I remember when I did the key mod, the keys I had made for the glove box and bags would not turn the in ignition even before I shortened them. I used a different blank for the ignition.