<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