Not really? So Phil Schiller saying "the new M7 chip" is not really meant to suggest that the M7 is a chip? Pull the other one. Of course it doesn't really matter, but evidently it mattered enough to Apple marketing for them to lie about it.
I thought the M7 was presented as a co-processor, from Apple.com, which has nothing referring to it as a chip:
> Every iPhone 5s includes the new M7 motion coprocessor that gathers data from the accelerometer, gyroscope and compass to offload work from the A7 for improved power efficiency. [1]
As a co-processor, its probably embedded in an SoC.
[1] http://www.apple.com/pr/library/2013/09/10Apple-Announces-iP...
http://www.macrumors.com/2013/09/20/a7-processor-manufacture...