<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 NINE MONTHS ENDED SEPTEMBER 30, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <MULTIPLIER> 1,000 <PERIOD-TYPE> 9-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> SEP-30-1998 <CASH> 70,082 <SECURITIES> 44,241 <RECEIVABLES> 20,397 <ALLOWANCES> 150 <INVENTORY> 2,428 <CURRENT-ASSETS> 141,265 <PP&E> 9,818 <DEPRECIATION> 5,073 <TOTAL-ASSETS> 149,083 <CURRENT-LIABILITIES> 31,708 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 38 <OTHER-SE> 117,337 <TOTAL-LIABILITY-AND-EQUITY> 149,083 <SALES> 85,522 <TOTAL-REVENUES> 88,420 <CGS> 46,537 <TOTAL-COSTS> 48,623 <OTHER-EXPENSES> 17,973 <LOSS-PROVISION> 150 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> 26,491 <INCOME-TAX> 2,914 <INCOME-CONTINUING> 23,577 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 23,577 <EPS-PRIMARY> 0.59 <EPS-DILUTED> 0.56