I don't use wood chips anymore after I was shown how they attract termites back in Memphis. Every bed around the house I bought was infested with them in the newly mulched beds from the previous owner. Thankfully they were not into the house yet. Pine bark or cedar only for me from then on.
I've used chips before and never had a problem. I guess most mulch products can have critter infestations. Cedar does have natural anti-bug protection.