The delay in the U.S. "chip bill" has seriously affected the expansion plans of large semiconductor companies

Micron is in talks with several states to add capacity. Incentives are key to the success of the U.S. plant project, but companies can't keep delaying investment decisions because Congress is slow to give a decision, and these companies are targeting their plans to expand where it's most economically feasible. Micron plans to spend more than $150 billion over the next decade to boost manufacturing capacity.

Chip companies have been lobbying Congress for years to provide financial support that would significantly reduce the cost of new plants in the United States. Their appeals have all been opposed by a number of bipartisan voices in the administration -- arguing that the funding proposal is either political carve-out or that it should be tied to social policy commitments, such as higher wages.

Senate Majority Leader Chuck Schumer revealed that a vote on a bill that includes chip investments but not other provisions is expected as early as Tuesday, according to the Wall Street Journal. It remains uncertain whether the Senate will agree to move forward with this specific chip bill.

NXP is one of the world's largest suppliers of chips to the automotive industry, which is consuming chips at an unprecedented rate as car manufacturing becomes increasingly complex. NXP is weighing expansion of one of its two Austin, Texas, plants to help fund incentives for the project, which the paper said is worth about $2.6 billion, according to a May presentation of the proposal by Kroll LLC, a consulting firm hired by NXP.

NXP aims to finalize the project in the fourth quarter of this year and break ground on it in 2024, the report said. But if the Austin expansion project doesn't go ahead, the company may expand its Singapore facility, partner with other chipmakers in Europe or outsource production to contract chipmakers in Asia.

NXP is also considering expanding its production facilities in Arizona, according to a spokeswoman. The company confirmed other details of its expansion plans, adding that it would work to expand the industry.