<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
(A) S3 INCORPORATED CONDENSED CONSOLIDATED BALANCE SHEET AS OF DECEMBER
31, 1996 AND CONDENSED CONSOLIDATED STATEMENTS OF INCOME FOR THE YEAR
ENDED DECEMBER 31, 1996, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH (B) FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-START>                             JAN-01-1996
<PERIOD-END>                               DEC-31-1996
<CASH>                                          94,616
<SECURITIES>                                    62,768
<RECEIVABLES>                                   78,768
<ALLOWANCES>                                     2,648
<INVENTORY>                                     53,466
<CURRENT-ASSETS>                               326,049
<PP&E>                                          55,187
<DEPRECIATION>                                  21,140
<TOTAL-ASSETS>                                 485,172
<CURRENT-LIABILITIES>                          100,499
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                       169,411
<OTHER-SE>                                      90,910
<TOTAL-LIABILITY-AND-EQUITY>                   485,172
<SALES>                                        439,243
<TOTAL-REVENUES>                               439,243
<CGS>                                          266,367
<TOTAL-COSTS>                                  266,367
<OTHER-EXPENSES>                               112,182
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                               1,971
<INCOME-PRETAX>                                 62,923
<INCOME-TAX>                                    21,335
<INCOME-CONTINUING>                             41,588
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    41,588
<EPS-PRIMARY>                                     0.82
<EPS-DILUTED>                                     0.81