Jeep toad ?

Interesting about the "chipped key" for 2005 and 2006 Wranglers
Years ago, I had a 2006 Wrangler Rubicon Unlimited that I had spare keys for made at Ace Hardware. No chips. The stock keys had a plastic cover on them, but there was no evidence of any chips. The Ace Hardware keys worked just fine.
My current 2005 Wrangler Unlimited; same thing. I carry an Ace Hardware key in my wallet, and there is another in a magnetic box hidden under the Jeep. Both work just fine for starting and driving the Jeep.
I can only relate my personal experience.
I was going to check the Owner's Manual, but I discovered I don't have one. Perhaps I will do an online search for it.

EDIT: So, I searched for the Owner's Manual, and found a PDF file. It is readily apparent that Jeep installed, in some Wranglers, a Sentry Key Immobilizer System that had a chipped ignition key. Neither of the two Wranglers I have owned over the years had that system installed. My son's 2003 Rubicon doesn't have it either.
NOTE: ALL of those vehicles sold new in California, where the system was considered to be in high demand.
NOTE 2: Rumor has it that the system has a high failure rate when the vehicle becomes 10 to 20 years old, and Jeep has no parts available to fix it. It must be disconnected in the steering column, and the ECU reprogrammed to disable it so it can not be reconnected. I do not know if that is true.
NOTE 3: If the plastic on your ignition key (2001-2006) is concave on both sides, it is non-chipped. If it is fat (convex) on one or both sides, it is probably chipped. Mine is concave both sides.