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A novel architecture was proposed in  to address scalability issues in large, high speed packet switches. The architecture proposed in , namely OBIG (output buffers with input groups), distributes the switch fabric across multiple chips, which communicate via high speed interconnects enabled by proximity communication (PC), a recently developed circuit technology . An OBIG switch aggregates multiple input flows inside the switch fabric, thereby significantly reducing the amount of memory required for internal buffers, vis-a-vis a conventional buffered crossbar, which has buffers at every crosspoint. Thus, the OBIG architecture is promising for realizing terabit switches with hundreds of ports. This paper studies packet scheduling algorithms which help realize the potential of OBIG-like switch architectures. The emphasis here is on designing backlog aware scheduling algorithms, while ensuring desirable traits such as low computational complexity and scalability. The efficacy of the proposed scheduling algorithms with respect to performance metrics such as average delay and fairness is demonstrated via simulations under a variety of scenarios.