Look at the feedback, you may get a clue there.
Back when they were charging $3 for this "chip upgrade", I figured I'd give it a shot.  I knew beforehand, from reading the feedback, that the "chip" was a simple resistor that could be purchased from Radio Shack for $0.30, but I figured I'd give it a shot.
I believe it went into the line for the intake air temp sensor.  It "fooled" the computer into thinking the air temp was cooler than it actually was.  As was said in another reply, this changed the fuel ratio and timing with the intent of making you feel like you had more HP.
I'd seen this technique used effectively on Trucks TV but it was with a much more sophisticated system.
If it was a few bucks, I'd say try it for yourself, but I can tell you that all it really did for mine was make it idle a little faster.  I felt NO power increase.