<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
financial statements in the Quarterly Report on Form 10-Q of DSP Group,
Inc. for the quarter ended March 31, 1996 and is qualified in its entirety
by reference to such financial statements.
</LEGEND>
<CIK> 0000915778
<NAME> DSP GROUP, INC.
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-START>                             JAN-01-1996
<PERIOD-END>                               MAR-31-1996
<CASH>                                          14,651
<SECURITIES>                                    18,669
<RECEIVABLES>                                    5,376
<ALLOWANCES>                                         0
<INVENTORY>                                      7,951
<CURRENT-ASSETS>                                48,598
<PP&E>                                           6,847
<DEPRECIATION>                                 (2,965)
<TOTAL-ASSETS>                                  56,627
<CURRENT-LIABILITIES>                            8,038
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                             9
<OTHER-SE>                                      48,580
<TOTAL-LIABILITY-AND-EQUITY>                    56,627
<SALES>                                          7,655
<TOTAL-REVENUES>                                11,197
<CGS>                                            5,200
<TOTAL-COSTS>                                    5,430
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                 (3)
<INCOME-PRETAX>                                    638
<INCOME-TAX>                                        64
<INCOME-CONTINUING>                                  0
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                       574
<EPS-PRIMARY>                                     0.06
<EPS-DILUTED>                                     0.06