<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS IN THE ANNUAL REPORT ON FORM 10-K OF DSP GROUP, INC FOR THE
YEAR ENDED DECEMBER 31, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-START>                             JAN-01-1997
<PERIOD-END>                               DEC-31-1997
<CASH>                                           7,325
<SECURITIES>                                    58,619
<RECEIVABLES>                                    3,887
<ALLOWANCES>                                       293
<INVENTORY>                                      4,116
<CURRENT-ASSETS>                                77,945
<PP&E>                                           9,010
<DEPRECIATION>                                   5,522
<TOTAL-ASSETS>                                  85,168
<CURRENT-LIABILITIES>                           10,998
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                            10
<OTHER-SE>                                      74,160
<TOTAL-LIABILITY-AND-EQUITY>                    85,168
<SALES>                                         51,238
<TOTAL-REVENUES>                                61,959
<CGS>                                           31,143
<TOTAL-COSTS>                                   32,312
<OTHER-EXPENSES>                                 8,420
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                 226
<INCOME-PRETAX>                                 13,792
<INCOME-TAX>                                     2,758
<INCOME-CONTINUING>                             11,034
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    11,034
<EPS-PRIMARY>                                     1.13
<EPS-DILUTED>                                     1.08