A Chip Wood Block takes 4 wood chips to craft. When a Chip Wood Block is crushed, it gives back 7 wood chips, resulting in infinite Wood Chips.

I already went through your mod, you gave Chip Wood Block the tag of planks and made a recipe that turns 1 plank into 7 wood chips.

I fixed it for my own use + added 2 crushing recipes for wooden doors and wooden trapdoors. I am uploading my version if you are interested in copying the recipes to fix it for everyone.

Create Diesel Generators Chips.zip

I noticed this, too. What does your fix do? The easiest thing seems like it would be to require 9 wood chips for 1 chip wood block, instead of 4.