<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 June 30, 1996 and is qualified in its entirety
by reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-START>                             JAN-01-1996
<PERIOD-END>                               JUN-30-1996
<CASH>                                          13,888
<SECURITIES>                                    18,406
<RECEIVABLES>                                    6,574
<ALLOWANCES>                                         0
<INVENTORY>                                      8,103
<CURRENT-ASSETS>                                48,844
<PP&E>                                           7,020
<DEPRECIATION>                                 (3,295)
<TOTAL-ASSETS>                                  56,652
<CURRENT-LIABILITIES>                            7,591
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                             9
<OTHER-SE>                                      49,061
<TOTAL-LIABILITY-AND-EQUITY>                    56,652
<SALES>                                         17,733
<TOTAL-REVENUES>                                24,218
<CGS>                                           13,133
<TOTAL-COSTS>                                   13,511
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                   0
<INCOME-PRETAX>                                    939
<INCOME-TAX>                                        97
<INCOME-CONTINUING>                                  0
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                       842
<EPS-PRIMARY>                                      .09
<EPS-DILUTED>                                      .09