PREHEAT oven to 350ºF. Mix potato flakes and milk in large bowl; let stand 5 min. or until milk is absorbed. Add sour cream, Neufchatel and half of the onions; mix well. Dip will be soft set.
SPOON into 9-inch pie plate; sprinkle with shredded cheese and bacon bits.
BAKE 15 to 20 min. or until cheese is melted and dip is heated through. Sprinkle with remaining onions. Serve with the chips.