<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 SIX MONTHS ENDED JUNE 30, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1000
       
                             
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-START>                             JAN-01-1998
<PERIOD-END>                               JUN-30-1998
<CASH>                                          78,357
<SECURITIES>                                    40,047
<RECEIVABLES>                                   16,155
<ALLOWANCES>                                       100
<INVENTORY>                                      1,196
<CURRENT-ASSETS>                               139,511
<PP&E>                                           9,378
<DEPRECIATION>                                   4,578
<TOTAL-ASSETS>                                 147,592
<CURRENT-LIABILITIES>                           25,820
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                            40
<OTHER-SE>                                     121,732
<TOTAL-LIABILITY-AND-EQUITY>                   147,592
<SALES>                                         51,842
<TOTAL-REVENUES>                                53,558
<CGS>                                           26,836
<TOTAL-COSTS>                                   28,357
<OTHER-EXPENSES>                                 5,116
<LOSS-PROVISION>                                   100
<INTEREST-EXPENSE>                                   0
<INCOME-PRETAX>                                 16,578
<INCOME-TAX>                                     1,740
<INCOME-CONTINUING>                             14,838
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    14,838
<EPS-PRIMARY>                                     0.37
<EPS-DILUTED>                                     0.35