<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS IN THE QUARTERLY REPORT ON FORM 10-Q OF DSP COMMUNICATIONS,
INC. FOR THE QUARTER ENDED MARCH 31, 1996 AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-START>                             JAN-01-1996
<PERIOD-END>                               MAR-31-1996
<CASH>                                          18,466
<SECURITIES>                                    18,441
<RECEIVABLES>                                    5,220
<ALLOWANCES>                                         0
<INVENTORY>                                          0
<CURRENT-ASSETS>                                43,708
<PP&E>                                           2,265
<DEPRECIATION>                                       0
<TOTAL-ASSETS>                                  49,787
<CURRENT-LIABILITIES>                           10,432
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                            18
<OTHER-SE>                                      39,137
<TOTAL-LIABILITY-AND-EQUITY>                    49,787
<SALES>                                         16,124
<TOTAL-REVENUES>                                17,322
<CGS>                                            9,212
<TOTAL-COSTS>                                   10,070
<OTHER-EXPENSES>                                 3,542
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                  57
<INCOME-PRETAX>                                  4,085
<INCOME-TAX>                                       510
<INCOME-CONTINUING>                              3,575
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     3,575
<EPS-PRIMARY>                                     0.18
<EPS-DILUTED>                                     0.18