<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