<ARTICLE> 5 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FINANCIAL STATEMENTS IN THE QUARTERLY REPORT ON FORM 10-Q OF DSP COMMUNICATIONS, INC. FOR THE QUARTER ENDED MARCH 31, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <MULTIPLIER> 1,000 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> MAR-31-1998 <CASH> 78,757 <SECURITIES> 29,690 <RECEIVABLES> 10,746 <ALLOWANCES> 50 <INVENTORY> 1,552 <CURRENT-ASSETS> 123,424 <PP&E> 8,399 <DEPRECIATION> 4,127 <TOTAL-ASSETS> 131,185 <CURRENT-LIABILITIES> 18,623 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 39 <OTHER-SE> 112,523 <TOTAL-LIABILITY-AND-EQUITY> 131,185 <SALES> 21,916 <TOTAL-REVENUES> 23,086 <CGS> 10,634 <TOTAL-COSTS> 11,638 <OTHER-EXPENSES> 2,173 <LOSS-PROVISION> 50 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> 7,486 <INCOME-TAX> 786 <INCOME-CONTINUING> 6,700 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 6,700 <EPS-PRIMARY> 0.17 <EPS-DILUTED> 0.16