<TABLE> <S> <C>

<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM (A)
S3 INCORPORATED CONDENSED CONSOLIDATED BALANCE SHEET AS OF MARCH 31, 1997, JUNE
30, 1997 AND SEPTEMBER 30, 1997 AND CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 1997 FOR THE SIX MONTHS ENDED JUNE 30,
1997 AND THE NINE MONTHS ENDED SEPTEMBER 30, 1997 AND IS QUALIFIED IN ITS
ENTIRETY BY REF. </LEGEND>
<MULTIPLIER> 1,000

<S>                             <C>                     <C>                     <C>
<PERIOD-TYPE>                   3-MOS                   6-MOS                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1997             DEC-31-1997             DEC-31-1997
<PERIOD-START>                             JAN-01-1997             APR-01-1997             JUL-01-1997
<PERIOD-END>                               MAR-31-1997             JUN-30-1997             SEP-30-1997
<CASH>                                          82,164                  67,416                  67,399
<SECURITIES>                                    64,413                  55,851                  44,692
<RECEIVABLES>                                   99,064                 107,326                 120,798
<ALLOWANCES>                                     2,181                   2,329                   3,340
<INVENTORY>                                     53,316                  46,615                  50,727
<CURRENT-ASSETS>                               336,627                 316,543                 315,991
<PP&E>                                          61,611                  73,300                  78,523
<DEPRECIATION>                                  22,113                  25,722                  29,930
<TOTAL-ASSETS>                                 517,016                 516,532                 535,634
<CURRENT-LIABILITIES>                          113,680                 112,473                 131,156
<BONDS>                                              0                       0                       0
<PREFERRED-MANDATORY>                                0                       0                       0
<PREFERRED>                                          0                       0                       0
<COMMON>                                       171,590                 173,700                 178,987
<OTHER-SE>                                     105,195                 103,567                 108,003
<TOTAL-LIABILITY-AND-EQUITY>                   517,016                 516,532                 535,634
<SALES>                                        130,255                 214,844                 334,448
<TOTAL-REVENUES>                               130,255                 214,844                 334,448
<CGS>                                           75,620                 128,248                 207,039
<TOTAL-COSTS>                                   75,620                 128,248                 207,039
<OTHER-EXPENSES>                                31,572                  66,103                  99,923
<LOSS-PROVISION>                                     0                       0                       0
<INTEREST-EXPENSE>                               1,622                   3,244                   4,866
<INCOME-PRETAX>                                 23,071                  20,222                  26,478
<INCOME-TAX>                                     8,689                   7,606                   9,478
<INCOME-CONTINUING>                             14,382                  12,616                  17,000
<DISCONTINUED>                                       0                       0                       0
<EXTRAORDINARY>                                      0                       0                       0
<CHANGES>                                            0                       0                       0
<NET-INCOME>                                    14,382                  12,616                  17,000
<EPS-PRIMARY>                                     0.30                    0.26                    0.35
<EPS-DILUTED>                                     0.27                    0.24                    0.33


</TABLE>