It is not possible to set a background to Chip rather you can set the rounded corners or colors to it. You can also give a border color.
According to the documentation,
All attributes from Chip are supported. Do not use the
android:background attribute. It will be ignored because Chip manages
its own background Drawable. Also do not use the android:drawableStart
and android:drawableEnd attributes.
Hence if you are looking something to give corners or a chip with a different border color I would suggest you to try this,
Chip chip = new Chip(Activity.this);
chip.setText("Holiday");
chip.setCloseIcon(ResourcesCompat.getDrawable(getResources(), R.drawable.close_chip, null));
chip.setCloseIconTint(ColorStateList.valueOf(Color.parseColor("#aa99bc")));
chip.setPadding(5, 5, 5, 5);
chip.setCloseIconVisible(true);
chip.setTextAppearanceResource(R.style.ChipTextStyle);
chip.setChipStrokeColorResource(R.color.chip_border_color);
chip.setChipStrokeWidth(1);
chip.setChipCornerRadius(30);
chip.setChipBackgroundColorResource(R.color.chip_background);