<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