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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 NzelsdesWb92XU8Jwl1+a3uR9TnXgSKvPEzXa+tByUbwtYRnz5oOrGRHJPNClppR
 4X7HD7nSigqjMq3cIn3MJg==

<SEC-DOCUMENT>0001181431-05-039148.txt : 20050706
<SEC-HEADER>0001181431-05-039148.hdr.sgml : 20050706
<ACCEPTANCE-DATETIME>20050706203156
ACCESSION NUMBER:		0001181431-05-039148
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20050704
FILED AS OF DATE:		20050706
DATE AS OF CHANGE:		20050706

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			DSP GROUP INC /DE/
		CENTRAL INDEX KEY:			0000915778
		STANDARD INDUSTRIAL CLASSIFICATION:	RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT [3663]
		IRS NUMBER:				942683643
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		3120 SCOTT BLVD
		CITY:			SANTA CLARA
		STATE:			CA
		ZIP:			95054
		BUSINESS PHONE:		4089864300

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			AYALON ELIYAHU
		CENTRAL INDEX KEY:			0001200825

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-23006
		FILM NUMBER:		05942186

	BUSINESS ADDRESS:	
		STREET 1:		2033 GATEWAY PLACE
		STREET 2:		SUITE 150
		CITY:			SAN JOSE
		STATE:			CA
		ZIP:			95110-1002
		BUSINESS PHONE:		408 986-4300

	MAIL ADDRESS:	
		STREET 1:		3120 SCOTT BLVD
		CITY:			SANTA CLARA
		STATE:			CA
		ZIP:			95054
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>rrd84899.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2005-07-04</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000915778</issuerCik>
        <issuerName>DSP GROUP INC /DE/</issuerName>
        <issuerTradingSymbol>DSPG</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001200825</rptOwnerCik>
            <rptOwnerName>AYALON ELIYAHU</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O DSP GROUP, INC.</rptOwnerStreet1>
            <rptOwnerStreet2>3120 SCOTT BLVD</rptOwnerStreet2>
            <rptOwnerCity>SANTA CLARA</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>95054</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>Executive Chair of the Board</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Stock Option</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>23.88</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2005-07-04</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>110000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <footnoteId id="F1"/>
            </exerciseDate>
            <expirationDate>
                <value>2012-07-04</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>110000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>979900</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">25% of the shares of common stock subject to the option grant vested on the grant date and 25% vests on each of the first, second and third anniversaries of the grant date.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Eliyahu Ayalon</signatureName>
        <signatureDate>2005-07-06</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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