<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 NINE MONTHS ENDED SEPTEMBER 30, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <MULTIPLIER> 1,000 <PERIOD-TYPE> 9-MOS <FISCAL-YEAR-END> DEC-31-1996 <PERIOD-START> JAN-01-1996 <PERIOD-END> SEP-30-1996 <CASH> 72,736 <SECURITIES> 56,068 <RECEIVABLES> 9,706 <ALLOWANCES> 0 <INVENTORY> 0 <CURRENT-ASSETS> 140,658 <PP&E> 3,360 <DEPRECIATION> 0 <TOTAL-ASSETS> 147,416 <CURRENT-LIABILITIES> 16,502 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 22 <OTHER-SE> 130,412 <TOTAL-LIABILITY-AND-EQUITY> 147,416 <SALES> 58,717 <TOTAL-REVENUES> 61,053 <CGS> 31,541 <TOTAL-COSTS> 33,702 <OTHER-EXPENSES> 3,664 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> 19,575 <INCOME-TAX> 2,447 <INCOME-CONTINUING> 17,128 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 17,128 <EPS-PRIMARY> 0.76 <EPS-DILUTED> 0.76