<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS IN THE QUARTERLY REPORT ON FORM 10-Q OF DSP GROUP, INC. FOR
THE QUARTER ENDED JUNE 30, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-START>                             JAN-01-1998
<PERIOD-END>                               JUN-30-1998
<CASH>                                           8,690
<SECURITIES>                                    56,222
<RECEIVABLES>                                    6,908
<ALLOWANCES>                                       755
<INVENTORY>                                      3,827
<CURRENT-ASSETS>                                79,462
<PP&E>                                          10,241
<DEPRECIATION>                                   6,289
<TOTAL-ASSETS>                                  85,793
<CURRENT-LIABILITIES>                           12,555
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                            10
<OTHER-SE>                                      73,228
<TOTAL-LIABILITY-AND-EQUITY>                    85,793
<SALES>                                         26,446
<TOTAL-REVENUES>                                32,425
<CGS>                                           15,588
<TOTAL-COSTS>                                   15,786
<OTHER-EXPENSES>                                 4,528
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                 108
<INCOME-PRETAX>                                  9,962
<INCOME-TAX>                                     2,490
<INCOME-CONTINUING>                              7,472
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     7,472
<EPS-PRIMARY>                                     0.75
<EPS-DILUTED>                                     0.73