<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM S3
INCORPORATED CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 1997, 1996 AND 1995
AND CONSOLIDATED STATEMENTS OF INCOME FOR THE YEARS ENDED DECEMBER 31, 1997,
1996 AND 1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<PERIOD-TYPE> YEAR YEAR YEAR
<FISCAL-YEAR-END> DEC-31-1997 DEC-31-1996 DEC-31-1995
<PERIOD-START> JAN-01-1997 JAN-01-1996 JAN-01-1995
<PERIOD-END> DEC-31-1997 DEC-31-1996 DEC-31-1995
<CASH> 90,484 94,616 69,289
<SECURITIES> 27,186 62,768 24,630
<RECEIVABLES> 66,377 78,768 85,824
<ALLOWANCES> 5,664 2,648 1,614
<INVENTORY> 71,882 53,466 43,293
<CURRENT-ASSETS> 301,437 326,049 235,638
<PP&E> 80,488 55,187 31,784
<DEPRECIATION> 33,860 21,140 11,106
<TOTAL-ASSETS> 492,854 485,172 321,643
<CURRENT-LIABILITIES> 91,444 100,499 91,018
<BONDS> 0 0 0
<PREFERRED-MANDATORY> 0 0 0
<PREFERRED> 0 0 0
<COMMON> 187,276 169,411 156,474
<OTHER-SE> 83,564 90,910 49,390
<TOTAL-LIABILITY-AND-EQUITY> 492,854 485,172 321,643
<SALES> 436,359 439,243 316,309
<TOTAL-REVENUES> 436,359 439,243 316,309
<CGS> 270,223 266,367 189,767
<TOTAL-COSTS> 270,223 266,367 189,767
<OTHER-EXPENSES> 151,671 112,182 75,590
<LOSS-PROVISION> 0 0 0
<INTEREST-EXPENSE> 6,477 1,971 0
<INCOME-PRETAX> 12,331 62,923 55,441
<INCOME-TAX> 3,453 21,335 20,067
<INCOME-CONTINUING> 8,878 41,588 35,374
<DISCONTINUED> 0 0 0
<EXTRAORDINARY> 0 0 0
<CHANGES> 0 0 0
<NET-INCOME> 8,878 41,588 35,374
<EPS-PRIMARY> 0.18 0.88 0.83
<EPS-DILUTED> 0.17 0.81 0.75