In something around 50 years of using wood chips as mulches I have not yet found any termites in any of those mulches. Maybe it happens, but it is not something I have seen. On occassion with a tree that has fallen in the forest I have found that termites are working on the, now very dry, wood in the trunk, but only occassionally not with every tree trunk I find. Wood chips, used as a mulch, should be moist enough that the termite species we have you here will not be eating them (they eat dry wood only) and not quite moist enough to allow them to nest in that mulch.
Now, I have found ants nesting in that same mulch, and ant larva which are wee white thingys that many people, that do not know, may well think are termites.

Playsinthedirt, there are some precautions that need to be taken with mulch, just to be on the safe side. The problem with subterranean termites is that we don't see them, oftentimes, until they have set up housekeeping. ;-(

Termites can live in the soil, and will take advantage of the nice environment that mulch makes in order to build large underground chambers. From there, they seek out their feeding sites (trees, buildings, fallen logs, and even mulch).

Because of this, it is not recommended that you use wood mulch right up against a building. And it's best to keep the layer of mulch to 2 or 3 inches. Don't pile mulch up against the trunk of a tree (which is bad anyway, regardless of termites).

I've used wood chips as mulch for many years and will continue to do so without reservations. But understanding a bit about this 'foe' and how to prevent possible infestation is important.

Cedar mulch is derived from the eastern red cedar (actually Juniperus virginiana), and only the relatively rare heartwood has proved to have any termite (or other insect) resistance at all. The sapwood, which comprises most mulch products, is termite food just like most other woods. ;-)

Thank you very much. I have taken care to pile the mulch to a depth of about three inches,and I know about keeping it away from tree trunks and, as I said, the house.

Maybe those white things last Fall weren't termites at all!