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Unknowingly copied the above from the OU website:
If potatoes are subject to bishul akum, what about potato chips? Must kosher certified potato chips have bishul Yisroel status?
This question hinges on the following inquiry. As noted, bishul akum applies only to foods that are “oleh al shulchan melachim” (served at royal feasts, henceforth abbreviated oas”m). Must the food be oas”m in its current form (which would exclude potato chips from bishul akum, since they are not served at royal banquets) or, does it suffice that the food category can be prepared in a manner that is suitable to be oas”m (in which case potato chips are subject to bishul akum, since potatoes can be prepared as a fancy food item)?
Rabbi Belsky, zt”l subscribed to the former position and held that potato chips are not oas”m and bishul akum does not apply. Rabbi Belsky brought as evidence the statement of the Rama (YD 112:1) that rice bread is not subject to bishul akum, because it would not be served at a royal table and is not oas”m. Plain rice is oas”m, but nonetheless rice bread is not. This proves that we consider the actual manner of preparation and not the suitability of the food category.