is there a phone chip in the old Ipohone needed to be pulled and insert to the new I phone?

Possibly you are thinking of the SIM card.

User tip by Lawrence Finch: Remove and replace SIM card - Apple Community.

There is a SIM card in the old phone that has your cellular account information on it. You can removed that card and put it in the new phone to transfer your service. Alternatively, you can contact your carrier and request a new SIM card or activate the eSIM that is built into the phone→Remove or switch the SIM card in your iPhone - Apple Support