<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from S3
Incorporated Condensed Consolidated Financial Statements for the period ended
June 30, 1996 and is qualified in its entirety by reference to such 10-Q
filing.
</LEGEND>
<CIK> 0000850519
<NAME> S3 INCORPORATED
<MULTIPLIER> 1,000
<CURRENCY> U.S. DOLLARS
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1995
<PERIOD-START>                             APR-01-1996
<PERIOD-END>                               JUN-30-1996
<EXCHANGE-RATE>                                      1
<CASH>                                          69,226
<SECURITIES>                                    15,162
<RECEIVABLES>                                   91,330
<ALLOWANCES>                                     1,680
<INVENTORY>                                     51,973
<CURRENT-ASSETS>                               245,464
<PP&E>                                          41,201
<DEPRECIATION>                                  15,796
<TOTAL-ASSETS>                                 340,848
<CURRENT-LIABILITIES>                           83,762
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                       158,867
<OTHER-SE>                                      70,531
<TOTAL-LIABILITY-AND-EQUITY>                   340,848
<SALES>                                        103,825
<TOTAL-REVENUES>                               103,825
<CGS>                                           64,357
<TOTAL-COSTS>                                   91,001
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                   0
<INCOME-PRETAX>                                 13,527
<INCOME-TAX>                                     4,735
<INCOME-CONTINUING>                              8,792
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     8,792
<EPS-PRIMARY>                                     0.18
<EPS-DILUTED>                                        0