<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