There is a lot of surface area when you are dealing with chips vs. logs so there is a much higher incidence on N lock-up. The chips could create an anaerobic layer that could result in a gley effect (people use this technique to seal leaky ponds)where
water will not penetrate any further so you lose that benefit, you don't necessarily want that homogenized layer in there. Even the old partially broken down chips are going to break down relatively quickly causing rapid shrinkage in the mound. Just to name a few. There are ways to combat these problems or reduce their effects, but like I said it would probably be easier and more effective just to use the chips for mulch. The chips are a great resource, use them wisely. One other thing you might consider if you don't have access to much in the way of larger pieces of wood would be to use the chips as mulch on a more conventional garden layout, or sheet mulch, or herb spirals, or mandala beds, or keyhole gardens, or.....
Hugelkultur isn't necessarily appropriate for every situation. One of the big benefits of hugelkultur is utilizing an otherwise wasted resource in downed branches and rotting logs. You lose that if you have to import a bunch of material to create the bed. That being said, if chips is all you've got and you're dead set on hugelkultur then by all means get after it... something is better than nothing. Just be aware you may not see a lot of the benefits that others are.