WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.

  

<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from S3
Incorporated Condensed Consolidated Financial Statements for the period ended
March 31, 1996 and is qualified in its entirety by reference to such 10-Q
filing.
</LEGEND>
<CIK> 0000990294
<NAME> S3 INCORPORATED
<MULTIPLIER> 1,000
<CURRENCY> U.S. DOLLARS
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1995
<PERIOD-START>                             JAN-01-1996
<PERIOD-END>                               MAR-31-1996
<EXCHANGE-RATE>                                      1
<CASH>                                          71,131
<SECURITIES>                                    22,795
<RECEIVABLES>                                   81,154
<ALLOWANCES>                                     1,614
<INVENTORY>                                     47,889
<CURRENT-ASSETS>                               238,552
<PP&E>                                          37,115
<DEPRECIATION>                                  13,382
<TOTAL-ASSETS>                                 331,691
<CURRENT-LIABILITIES>                           85,458
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                       157,113
<OTHER-SE>                                      61,697
<TOTAL-LIABILITY-AND-EQUITY>                   331,691
<SALES>                                        110,072
<TOTAL-REVENUES>                               110,072
<CGS>                                           66,510
<TOTAL-COSTS>                                   92,145
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                   0
<INCOME-PRETAX>                                 18,933
<INCOME-TAX>                                     6,625
<INCOME-CONTINUING>                             12,308
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    12,308
<EPS-PRIMARY>                                     0.25
<EPS-DILUTED>                                        0