Hi! I just bought a broken white japan saturn model 2 and found out that if I remove the modchip everything is working. What I wonder is, where you I start my trouble shooting? I've measured 5v to the chip, that's all I attached some pictures of the chip here as well
What is the serial of the machine? What does it do with the modchip plugged in? Is the modchip plugged in right ("in" is plugged to the cd drive, "out" to the motherboard, and there has to be a 5v power cable connecting to the power supply or some other 5v source)? Are the ribbons facing the right direction? They might be plugged in backwards, not connecting. What is the chip jumpered to, 0014 or 0019? Your picture is out of focus. Normally for that chip you have to jumper it to 0014, connect an extra two legs (already connected on yours), cut a line (already cut on yours), give it power, plug it in correctly, and it'll run fine in any machine. Except for Sanyo lasers, for those you need power from the CD drive or trap board for some reason.
That is a Universal V3 chip and have one in my V1 saturn. If yours is a V1, you dont need to bridge the 0014 and 0019, as all you do is solder a wire to the 5v on the chip and the other end of the wire to the 5v on the PSU. As Druid said, check all the ribbon cables, as they need to be connected properly in the right order. http://www.segastyle.com/saturnmod.html
It's not a "universal v3" chip, it's an EMSIC7-1. For the best compatibility that chip needs to be jumpered to 0014, have two extra points soldered together, and a line cut. The latter two is already done, but I can't see what the chip is jumpered to on the pictures.