What kind of IC drives this safety LED night light?
The chip is under the white "blob" between the PY55 and 7340 text on the PCB.

As the LED strip also says PY55 indeed the PY55 refers to the LED strip.

The 7340 can also just be the modelnumber of the PCB. It is uncommon to print an IC type number on a PCB especially when the package is a "COB" (Chip on Board) like this one.

The chip is either a dedicated chip designed for this type of application

or

it is a cheap micro controller that is programmed to perform this function.

There are microcontrollers you can buy for 3 cents, see this EEVBlog video

At that price it makes little sense to use something else.