<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM (A)
S3 INCORPORATED CONDENSED CONSOLIDATED BALANCE SHEET AS OF MARCH 31, 1997, JUNE
30, 1997 AND SEPTEMBER 30, 1997 AND CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 1997 FOR THE SIX MONTHS ENDED JUNE 30,
1997 AND THE NINE MONTHS ENDED SEPTEMBER 30, 1997 AND IS QUALIFIED IN ITS
ENTIRETY BY REF. </LEGEND>
<MULTIPLIER> 1,000
<PERIOD-TYPE> 3-MOS 6-MOS 9-MOS
<FISCAL-YEAR-END> DEC-31-1997 DEC-31-1997 DEC-31-1997
<PERIOD-START> JAN-01-1997 APR-01-1997 JUL-01-1997
<PERIOD-END> MAR-31-1997 JUN-30-1997 SEP-30-1997
<CASH> 82,164 67,416 67,399
<SECURITIES> 64,413 55,851 44,692
<RECEIVABLES> 99,064 107,326 120,798
<ALLOWANCES> 2,181 2,329 3,340
<INVENTORY> 53,316 46,615 50,727
<CURRENT-ASSETS> 336,627 316,543 315,991
<PP&E> 61,611 73,300 78,523
<DEPRECIATION> 22,113 25,722 29,930
<TOTAL-ASSETS> 517,016 516,532 535,634
<CURRENT-LIABILITIES> 113,680 112,473 131,156
<BONDS> 0 0 0
<PREFERRED-MANDATORY> 0 0 0
<PREFERRED> 0 0 0
<COMMON> 171,590 173,700 178,987
<OTHER-SE> 105,195 103,567 108,003
<TOTAL-LIABILITY-AND-EQUITY> 517,016 516,532 535,634
<SALES> 130,255 214,844 334,448
<TOTAL-REVENUES> 130,255 214,844 334,448
<CGS> 75,620 128,248 207,039
<TOTAL-COSTS> 75,620 128,248 207,039
<OTHER-EXPENSES> 31,572 66,103 99,923
<LOSS-PROVISION> 0 0 0
<INTEREST-EXPENSE> 1,622 3,244 4,866
<INCOME-PRETAX> 23,071 20,222 26,478
<INCOME-TAX> 8,689 7,606 9,478
<INCOME-CONTINUING> 14,382 12,616 17,000
<DISCONTINUED> 0 0 0
<EXTRAORDINARY> 0 0 0
<CHANGES> 0 0 0
<NET-INCOME> 14,382 12,616 17,000
<EPS-PRIMARY> 0.30 0.26 0.35
<EPS-DILUTED> 0.27 0.24 0.33