<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FINANCIALS
OF NOVELLUS SYSTEMS, INC. SECOND QUARTER 1995 10Q AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          DEC-31-1995
<PERIOD-START>                             JAN-01-1995
<PERIOD-END>                               JUN-30-1995
<CASH>                                          60,124
<SECURITIES>                                    96,231
<RECEIVABLES>                                   70,611<F1>
<ALLOWANCES>                                         0
<INVENTORY>                                     35,548
<CURRENT-ASSETS>                               274,959
<PP&E>                                          55,415
<DEPRECIATION>                                  20,449
<TOTAL-ASSETS>                                 311,619
<CURRENT-LIABILITIES>                           57,158
<BONDS>                                              0
<COMMON>                                       118,108
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<OTHER-SE>                                     136,353
<TOTAL-LIABILITY-AND-EQUITY>                   311,619
<SALES>                                        163,528
<TOTAL-REVENUES>                               163,528
<CGS>                                           69,298
<TOTAL-COSTS>                                   69,298
<OTHER-EXPENSES>                                44,454
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                 122
<INCOME-PRETAX>                                 54,221
<INCOME-TAX>                                    18,435
<INCOME-CONTINUING>                             35,786
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    35,786
<EPS-PRIMARY>                                     2.10
<EPS-DILUTED>                                     2.10
<FN>
<F1> REPORTED ON A NET BASIS FOR QUARTERLY PURPOSES