A packet switching integrated circuit chip is configured to receive packets, e.g., RapidIO™-compliant packets, from a plurality of external sources, and selectively passes data in the received packets to a plurality of external recipients. The chip is configured to pass first received packets without modification and to terminate second received packets and preprocess payloads thereof to produce new packets. The chip may be configured to perform signal sample processing operations on the second received packets, such as bit extension, bit truncation, bit reordering and/or bit arithmetic operations. The chip may be further configured to manage the first and second received packets based on destination addresses in the received packets.