<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS IN THE QUARTERLY REPORT ON FORM 10-Q OF DSP COMMUNICATINS,
INC. FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1997 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-START>                             JAN-01-1997
<PERIOD-END>                               SEP-30-1997
<CASH>                                          69,195
<SECURITIES>                                    31,352
<RECEIVABLES>                                   12,633
<ALLOWANCES>                                       132
<INVENTORY>                                          0
<CURRENT-ASSETS>                               118,961
<PP&E>                                           7,510
<DEPRECIATION>                                   3,343
<TOTAL-ASSETS>                                 127,033
<CURRENT-LIABILITIES>                           20,598
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                            40
<OTHER-SE>                                     105,545
<TOTAL-LIABILITY-AND-EQUITY>                   105,585
<SALES>                                         45,876
<TOTAL-REVENUES>                                49,467
<CGS>                                           23,509
<TOTAL-COSTS>                                   26,953
<OTHER-EXPENSES>                                 4,582
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                   0
<INCOME-PRETAX>                                 14,155
<INCOME-TAX>                                     1,400
<INCOME-CONTINUING>                             12,755
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    12,755
<EPS-PRIMARY>                                     0.30
<EPS-DILUTED>                                     0.28