MAX232 chip fails to initialize properly with arduino
Datasheet for MAX232


  Section 7.3 Recommended Operating Conditions VCC Supply voltage
  
  MIN=4.5, NOM=5, MAX=5.5 (V)


The MAX232 has a minimum supply voltage of 4.5V, typically expecting 5V.

There are other alternatives, such as the MAX3232, which supports either 3.3V or 5V supply voltage.