<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM (A)
S3 INCORPORATED CONDENSED CONSOLIDATED BALANCE SHEET AS OF JUNE 30,
1997 AND CONDENSED CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE AND
SIX MONTHS ENDED JUNE 30, 1997, AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH (B) FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-START>                             APR-01-1997
<PERIOD-END>                               JUN-30-1997
<CASH>                                          67,416
<SECURITIES>                                    55,851
<RECEIVABLES>                                  107,326
<ALLOWANCES>                                     2,329
<INVENTORY>                                     46,615
<CURRENT-ASSETS>                               316,543
<PP&E>                                          73,300
<DEPRECIATION>                                  25,722
<TOTAL-ASSETS>                                 516,532
<CURRENT-LIABILITIES>                          112,473
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                       173,700
<OTHER-SE>                                     103,567
<TOTAL-LIABILITY-AND-EQUITY>                   516,532
<SALES>                                        214,844
<TOTAL-REVENUES>                               214,844
<CGS>                                          128,248
<TOTAL-COSTS>                                  128,248
<OTHER-EXPENSES>                                66,103
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                               3,244
<INCOME-PRETAX>                                 20,222
<INCOME-TAX>                                     7,606
<INCOME-CONTINUING>                             12,616
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    12,616
<EPS-PRIMARY>                                     0.25
<EPS-DILUTED>                                     0.25