01 - In a large skillet, melt the unsalted butter over medium heat. Add the finely diced yellow onions, salt, black pepper, and sugar. Cook, stirring frequently, until the onions achieve a golden brown, caramelized state, which typically takes 20–25 minutes. Remove from heat and allow to cool completely to room temperature.
02 - In a medium mixing bowl, thoroughly combine the sour cream, mayonnaise, garlic powder, onion powder, and the tablespoon of chopped fresh chives.
03 - Gently fold the cooled, caramelized onions into the sour cream mixture. Mix until all ingredients are well incorporated.
04 - Taste the dip and adjust seasoning as necessary. Transfer the mixture to an airtight container and refrigerate for a minimum of 30 minutes to allow the flavors to meld and deepen.
05 - Transfer the chilled onion dip to a decorative serving bowl. Garnish with additional fresh chives, if desired, and serve alongside the plain or ridged potato chips.