<TABLE> <S> <C>

<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
financial statements of VLSI Technology, Inc. for the fiscal years ended
December 27, 1996 and December 29, 1995 as reported and restated in the 1997
Form 10-K. 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>
<PERIOD-TYPE>                   12-MOS                   12-MOS
<FISCAL-YEAR-END>                          DEC-27-1996             DEC-29-1995
<PERIOD-START>                             DEC-30-1995             DEC-31-1994
<PERIOD-END>                               DEC-27-1996             DEC-29-1995
<CASH>                                         139,074                 183,165
<SECURITIES>                                    66,685                 182,416
<RECEIVABLES>                                  114,708                 121,738
<ALLOWANCES>                                   (2,200)                 (2,100)
<INVENTORY>                                     56,361                  60,848
<CURRENT-ASSETS>                               448,506                 598,135
<PP&E>                                         772,565                 698,213
<DEPRECIATION>                               (345,301)               (346,172)
<TOTAL-ASSETS>                                 890,942                 959,887
<CURRENT-LIABILITIES>                          210,490                 198,038
<BONDS>                                        209,973                 218,847
<PREFERRED-MANDATORY>                                0                       0
<PREFERRED>                                          0                       0
<COMMON>                                           472                     472
<OTHER-SE>                                     470,007                 530,157
<TOTAL-LIABILITY-AND-EQUITY>                   890,942                 959,887
<SALES>                                        669,017                 670,291
<TOTAL-REVENUES>                               669,017                 670,291
<CGS>                                          424,287                 423,617
<TOTAL-COSTS>                                  424,287                 423,017
<OTHER-EXPENSES>                               313,732                 170,500
<LOSS-PROVISION>                                   416                     209
<INTEREST-EXPENSE>                              13,036                   8,025
<INCOME-PRETAX>                               (77,889)                  62,586
<INCOME-TAX>                                  (31,931)                  16,370
<INCOME-CONTINUING>                           (45,958)                  46,216
<DISCONTINUED>                                 (3,589)                   (248)
<EXTRAORDINARY>                                      0                       0
<CHANGES>                                            0                       0
<NET-INCOME>                                    49,547                  45,968
<EPS-PRIMARY>                                   (1.08)                    1.11
<EPS-DILUTED>                                   (1.08)                    1.04
        

</TABLE>