Line large cookie sheet with waxed paper. In 2-quart saucepan, melt candy coating over low heat, stirring constantly.
In medium bowl mix pineapple, banana chips, pecans and cherries; reserve 1/2 cup. Add remaining fruit mixture to melted candy coating; toss to coat. Cool 5 minutes at room temperature. Gently fold in baking chips. Spread mixture evenly into 12x9-inch rectangle on waxed paper-lined cookie sheet; sprinkle with reserved fruit mixture. Cool until set, about 30 minutes.
Break into 1 1/2x1 1/2-inch pieces. Store in airtight container.