Allright, im confused again. When youre making an effect, is there a special chip for a distortion, or phaser? Or is it all in the wiring? Will it say like, "distortion effect chip" etc?
no it not like specific distortion chip but alot of pedals have chips but that not what does it all it's all the componets mixed and the chip
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all in the way its wired

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chips can also be called IC's - internal circuits, they are basically mini circuits which can perform a certain function and save you a lot of time. There arent specific chips for different effects, but certain chips as said, do different things so will be used for different effects, google it or search it on wikipedia for more info