<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, 1997 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-START>                             JAN-01-1997
<PERIOD-END>                               DEC-31-1997
<CASH>                                          82,322
<SECURITIES>                                    34,319
<RECEIVABLES>                                   11,200
<ALLOWANCES>                                         0
<INVENTORY>                                      4,424
<CURRENT-ASSETS>                               135,048
<PP&E>                                           7,870
<DEPRECIATION>                                   3,719
<TOTAL-ASSETS>                                 142,896
<CURRENT-LIABILITIES>                           26,993
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                            40
<OTHER-SE>                                     115,863
<TOTAL-LIABILITY-AND-EQUITY>                   142,896
<SALES>                                         76,817
<TOTAL-REVENUES>                                81,501
<CGS>                                           39,885
<TOTAL-COSTS>                                   44,804
<OTHER-EXPENSES>                                 6,562
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                   0
<INCOME-PRETAX>                                 24,033
<INCOME-TAX>                                     2,634
<INCOME-CONTINUING>                             21,399
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    21,399
<EPS-PRIMARY>                                     0.51
<EPS-DILUTED>                                     0.48