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Chip Failure?

Engine

Vehicle Information: Year: 2001; Engine (type, size, modifications): Normal; Total Mileage: 27,839; Transmission: Manual;

A couple of days ago the engine on my car quit as I was (gently) shifting from 1st to 2nd. My mechanic, after spending several hours testing various somethings said it appeared to be a failure of either the main computer chip or something related to the anti theft system and that it had to go to the dealer for repair (a tow trip of over 100 miles). Would work of this type be covered by the regular warrenty on this car? Are problems with these items common? Would appreciate any input.Thank You

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