<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