<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