<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, 1997 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-START>                             JAN-01-1997
<PERIOD-END>                               MAR-31-1997
<CASH>                                          17,224
<SECURITIES>                                    27,487
<RECEIVABLES>                                    7,254
<ALLOWANCES>                                       375
<INVENTORY>                                      2,634
<CURRENT-ASSETS>                                56,352
<PP&E>                                           7,454
<DEPRECIATION>                                   4,110
<TOTAL-ASSETS>                                  62,719
<CURRENT-LIABILITIES>                            6,132
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                            10
<OTHER-SE>                                      56,577
<TOTAL-LIABILITY-AND-EQUITY>                    62,719
<SALES>                                         11,898
<TOTAL-REVENUES>                                14,178
<CGS>                                            7,530
<TOTAL-COSTS>                                    7,873
<OTHER-EXPENSES>                                 1,941
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                  63
<INCOME-PRETAX>                                  2,372
<INCOME-TAX>                                       356
<INCOME-CONTINUING>                              2,016
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     2,016
<EPS-PRIMARY>                                     0.21
<EPS-DILUTED>                                     0.21