When I used chips/chunks I did not soak them. I found that the water doesn't really penetrate the wood and it slows down the wood from producing smoke. The water will evaporate causing steam (which looks like smoke) before actual smoke will appear.
I see this is your first post here so when you get a minute would you do us a favor and swing by "
Roll Call" and introduce yourself so we can give you a proper SMF Welcome, Thanks!