I don't know about your key, but mine is chipped in a 99. Factory alarms generally aren't the greatest and are only hooked up to a door trigger aside from the factory locks, meaning that if someone opens the door by busting the window and flipping the lock over to open the car, the alarm will sound. That's why I don't trust factory stuff much, as it's pretty easy to get away with the car while the alarm is blaring. Not to mention once under the hood, they can pull both feuses to the primary horn and secondary anti-theft horn and be good to go.
I'm new here, but just so you know I install car stereos, alarms, and mobile video stuff for a living so that's where my knowledge comes from. Hope I helped!