<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, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <MULTIPLIER> 1,000 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> DEC-31-1997 <PERIOD-START> JAN-01-1997 <PERIOD-END> MAR-31-1997 <CASH> 83,439 <SECURITIES> 56,503 <RECEIVABLES> 10,764 <ALLOWANCES> 132 <INVENTORY> 1,545 <CURRENT-ASSETS> 153,794 <PP&E> 6,477 <DEPRECIATION> 2,656 <TOTAL-ASSETS> 161,936 <CURRENT-LIABILITIES> 16,885 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 45 <OTHER-SE> 144,476 <TOTAL-LIABILITY-AND-EQUITY> 161,936 <SALES> 18,685 <TOTAL-REVENUES> 20,302 <CGS> 10,046 <TOTAL-COSTS> 11,052 <OTHER-EXPENSES> 1,443 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> 7,001 <INCOME-TAX> 875 <INCOME-CONTINUING> 6,126 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 6,126 <EPS-PRIMARY> 0.14 <EPS-DILUTED> 0.13