This is going to be a remake of the original film, so it is starting from scratch, but retaining the original plot just with a better budget and far better effects. Also, this film is probably not...
No chucky doesn't die. His son/daughter chops off his arms, legs, and head. Then later in the movie when glen goes to open his present he finds chucky's arm. So I'm guessing that he's still alive. So...
He died when Jade (Jessie's Girlfriend) took a gun from the detective and shot him. Tiffany (Chucky's wife) also stabbed him then he came back and stabbed her.