<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS IN THE ANNUAL REPORT ON FORM 10-K OF DSP COMMUNICATIONS,
INC. FOR THE TWELVE MONTHS ENDED DECEMBER 31, 1996 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER>1,000
       
                             
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-START>                             JAN-01-1996
<PERIOD-END>                               DEC-31-1996
<CASH>                                          77,799
<SECURITIES>                                    59,034
<RECEIVABLES>                                    7,186
<ALLOWANCES>                                       132
<INVENTORY>                                          0
<CURRENT-ASSETS>                               147,260
<PP&E>                                           5,899
<DEPRECIATION>                                   2,334
<TOTAL-ASSETS>                                 155,354
<CURRENT-LIABILITIES>                           18,030
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                            44
<OTHER-SE>                                     136,800
<TOTAL-LIABILITY-AND-EQUITY>                   136,844
<SALES>                                         85,128
<TOTAL-REVENUES>                                88,899
<CGS>                                           44,153
<TOTAL-COSTS>                                   47,703
<OTHER-EXPENSES>                                 5,311
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                   0
<INCOME-PRETAX>                                 24,858
<INCOME-TAX>                                     3,108
<INCOME-CONTINUING>                             21,750
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    21,750
<EPS-PRIMARY>                                     0.48
<EPS-DILUTED>                                     0.48