Yes that is how I did it for my car. The signal generator sends the signal into the PCM. My signal generator came off Ebay and cost about $18. Its was called "GM VATS or PasskeyII Bypass Module for LS1 and LT1". Even though that title makes it sound like it only works for V8's it worked fine for the V6. All that signal is doing is telling the PCM that the car is not being stolen so keep the fuel pump running. The theft logic is all inside the BCM and if the BCM thinks that the correct key is being used it sends that very same signal to the PCM.
But I should also mention that the anti theft relay has a role to play outside of the signal generator. Your trying to use a legit key for the car to start it and just want the faulty chip in the key circuit to be bypassed so the signal generator should be all you need to do. But if you were trying to steal a car and you didn't have the key - you would need to do the signal generator AND bypass the anti-theft relay too.
