<TABLE> <S> <C>


<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM S3
INCORPORATED CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 1997, 1996 AND 1995
AND CONSOLIDATED STATEMENTS OF INCOME FOR THE YEARS ENDED DECEMBER 31, 1997,
1996 AND 1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000

<S>                             <C>                    <C>                      <C>
<PERIOD-TYPE>                   YEAR                   YEAR                     YEAR
<FISCAL-YEAR-END>                          DEC-31-1997             DEC-31-1996             DEC-31-1995
<PERIOD-START>                             JAN-01-1997             JAN-01-1996             JAN-01-1995
<PERIOD-END>                               DEC-31-1997             DEC-31-1996             DEC-31-1995
<CASH>                                          90,484                  94,616                  69,289
<SECURITIES>                                    27,186                  62,768                  24,630
<RECEIVABLES>                                   66,377                  78,768                  85,824
<ALLOWANCES>                                     5,664                   2,648                   1,614
<INVENTORY>                                     71,882                  53,466                  43,293
<CURRENT-ASSETS>                               301,437                 326,049                 235,638
<PP&E>                                          80,488                  55,187                  31,784
<DEPRECIATION>                                  33,860                  21,140                  11,106
<TOTAL-ASSETS>                                 492,854                 485,172                 321,643
<CURRENT-LIABILITIES>                           91,444                 100,499                  91,018
<BONDS>                                              0                       0                       0
<PREFERRED-MANDATORY>                                0                       0                       0
<PREFERRED>                                          0                       0                       0
<COMMON>                                       187,276                 169,411                 156,474
<OTHER-SE>                                      83,564                  90,910                  49,390
<TOTAL-LIABILITY-AND-EQUITY>                   492,854                 485,172                 321,643
<SALES>                                        436,359                 439,243                 316,309
<TOTAL-REVENUES>                               436,359                 439,243                 316,309
<CGS>                                          270,223                 266,367                 189,767
<TOTAL-COSTS>                                  270,223                 266,367                 189,767
<OTHER-EXPENSES>                               151,671                 112,182                  75,590
<LOSS-PROVISION>                                     0                       0                       0
<INTEREST-EXPENSE>                               6,477                   1,971                       0
<INCOME-PRETAX>                                 12,331                  62,923                  55,441
<INCOME-TAX>                                     3,453                  21,335                  20,067
<INCOME-CONTINUING>                              8,878                  41,588                  35,374
<DISCONTINUED>                                       0                       0                       0
<EXTRAORDINARY>                                      0                       0                       0
<CHANGES>                                            0                       0                       0
<NET-INCOME>                                     8,878                  41,588                  35,374
<EPS-PRIMARY>                                     0.18                    0.88                    0.83
<EPS-DILUTED>                                     0.17                    0.81                    0.75


</TABLE>