Originally Posted by skrapps
I don't believe so, no. The hardware portion of this exploit is (as I understand it) just the FPGA that's soldered onto the PS3 Main Board, which sends a pulse every 40ns, simulating a button press, or something similar to it.
ModChips are chips that are soldered onto a Main Board and then provide additional or modified (hence MOD chip) functionality to a system.
This exploit is only for looking at/playing with and dumping information. Most of that is only memory.
This is only my own personal understanding, if I'm wrong, I'm more than happy to be corrected.
Edit: I forgot to add that ModChips require a proper hardware exploit that allows extended capability, if for example, someone found a way through writing to memory to allow .MKV files to be played (again, this is theoretical) using the exact same solder points (not likely) then yes, this would benefit modchip development. This however is not the case. Whether it's playing .MKV files, or backups, or homebrew. That is why the Dev's (and many others) are looking for the lv0 and lv1 dumps to reverse engineer so they can find more loopholes to exploit.