<TABLE> <S> <C>

<ARTICLE> 5
<LEGEND>
This schedule contains restated summary financial information of VLSI
Technology, Inc. for the nine months ended September 26, 1997, the six months
ended June 27, 1997 and the three months ended March 28, 1997. Certain amounts
have been reclassified to reflect results from continuing operations. EPS
amounts have been restated as required by FAS 128.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
       
<S>                             <C>                     <C>                     <C>
<PERIOD-TYPE>                   9-MOS                   6-MOS                   3-MOS
<FISCAL-YEAR-END>                          DEC-26-1997             DEC-26-1997             DEC-26-1997
<PERIOD-START>                             DEC-28-1996             DEC-28-1996             DEC-28-1996
<PERIOD-END>                               SEP-26-1997             JUN-27-1997             MAR-28-1997
<CASH>                                         200,391                 131,668                  90,634
<SECURITIES>                                    84,307                  94,533                 117,408
<RECEIVABLES>                                  116,242                 114,834                 104,767
<ALLOWANCES>                                   (2,000)                   2,100                 (2,000)
<INVENTORY>                                     56,090                  53,983                  57,054
<CURRENT-ASSETS>                               539,418                 457,208                 438,919
<PP&E>                                         804,495                 812,913                 794,269
<DEPRECIATION>                               (396,966)               (393,939)               (369,267)
<TOTAL-ASSETS>                                 968,248                 892,411                 882,409
<CURRENT-LIABILITIES>                          232,648                 203,670                 210,747
<BONDS>                                        200,059                 205,493                 207,758
<PREFERRED-MANDATORY>                                0                       0                       0
<PREFERRED>                                          0                       0                       0
<COMMON>                                           472                     472                     472
<OTHER-SE>                                     521,069                 482,776                 463,432
<TOTAL-LIABILITY-AND-EQUITY>                   968,248                 892,411                 882,409
<SALES>                                        519,636                 338,455                 167,478
<TOTAL-REVENUES>                               519,636                 338,455                 167,478
<CGS>                                          298,776                 198,535                  99,089
<TOTAL-COSTS>                                  298,776                 198,535                  99,089
<OTHER-EXPENSES>                               156,251                 102,603                  51,547
<LOSS-PROVISION>                                 (122)                   (196)                   (290)
<INTEREST-EXPENSE>                              13,224                   8,661                   4,459
<INCOME-PRETAX>                                 61,167                  35,089                  15,583
<INCOME-TAX>                                    16,515                  11,220                   4,980
<INCOME-CONTINUING>                             44,652                  23,869                  10,603
<DISCONTINUED>                                   5,173                 (2,550)                 (1,617)
<EXTRAORDINARY>                                      0                       0                       0
<CHANGES>                                            0                       0                       0
<NET-INCOME>                                    49,825                  21,319                   8,986
<EPS-PRIMARY>                                     1.07                    0.46                    0.19
<EPS-DILUTED>                                     1.02                    0.44                    0.19
        

</TABLE>