I am guessing by “chip” you are talking about the SIM card. The answer is ‘no’, the X1 is a CDMA phone and the SIM is tied to the phone itself, not the service, and is used solely for access to 4G. If your old device has it SIM still installed, your good to go, if not, RW will send you one.
It is still a very easy process to switch devices. We would recommend doing a FDR(factory data reset) on your old phone so it has a clean start. Then, simply start the activation process and sign into RW, Google, etc. using your fathers credentials. You will choose existing account, and choose his phone number as the service line you want to use on that device.
Documentation can be found here:
Reactivating My Republic Phone
Activate My Phone
Please feel free to reply is you have additional questions and/or would like additional assistance and the community will be glad to help get your father up and running on the replacement device.