Exhibit 10.8

MIPS TECHNOLOGIES, INC.
1998 LONG-TERM INCENTIVE PLANadopted by the Board of Directors on May 22, 1998
and approved by the Stockholder on May 22, 1998
(as amended August 27, 1998)
(as amended May 18, 1999 and approved by the Stockholders on October 28, 1999)
(as amended January 30, 2003)

---

MIPS TECHNOLOGIES, INC.  1998 LONG-TERM INCENTIVE PLAN  adopted by the Board of Directors on May 22, 1998  and approved by the Stockholder on May 22, 1998  (as amended August 27, 1998)  (as amended
May 18, 1999 and approved by the Stockholders on October 28, 1999)  (as amended January 30, 2003)

1.    Purposes

The purposes of the Plan are to (a) promote the long-term success of the Company and to increase stockholder value by providing Eligible
Individuals and Consultants with incentives to contribute to the long-term growth and profitability of the Company and (b) assist the Company in attracting, retaining and motivating
highly qualified individuals. The Plan permits the Committee to make Awards which constitute "qualified performance-based compensation" for purposes of Section 162(m) of the Code.

2.    Definitions

For purposes of the Plan, the following terms shall be defined as follows:



---



2

---



3

---



3.    Administration of the Plan



4

---



4.    Effective Date and Term

The Plan shall become effective upon its adoption by the Board subject to its approval by the stockholders of the Company. Prior to such stockholder approval, the
Committee may grant Awards conditioned on stockholder approval. If such stockholder approval is not obtained at or before the first annual meeting of stockholders to occur after the adoption of the
Plan by the Board (including any adjournment or adjournments thereof), the Plan and any Awards made thereunder shall terminateab
initioand be of no further force and effect. In no event shall any Awards be made under the Plan after the tenth anniversary of the date of the Board's adoption of the Plan.

5.    Shares of Common Stock Subject to the Plan



Shares
issued under this Plan may be either authorized but unissued shares, treasury shares or any combination thereof.



5

---



6.    Eligible Individuals

Awards may be granted by the Committee to Eligible Individuals;provided, however,that Consultants shall not be
eligible to receive Incentive Stock Options. An individual's status as an Administrator will not, by itself, affect his or her eligibility to participate in the Plan.

7.    Awards in General



6

---



8.    Stock Options



7

---



does
not exceed the excess of:



9.    Stock Appreciation Rights



8

---



10.  Stock Awards



11.  Restricted Stock



9

---



12.  Performance Units

Performance Units may be granted as fixed or variable share- or dollar-denominated units subject to such conditions of vesting and time of payment as the
Committee may determine and as shall be set forth in the applicable Award Document relating to such Performance Units. Performance Units may be paid in Common Stock upon the satisfaction of the
applicable performance criteria as described in
the Award Document, cash or a combination of Common Stock and cash, as the Committee may determine.

13.  Other Awards

The Committee shall have the authority to specify the terms and provisions of other forms of equity-based or equity-related Awards not described above which the
Committee determines to be consistent with the purpose of the Plan and the interests of the Company, which Awards may provide for cash payments based in whole or in part on the value or future value
of Common Stock, for the acquisition or future acquisition of Common Stock, or any combination thereof. Other Awards shall also include cash payments (including the cash payment of dividend
equivalents) under the Plan which may be based on one or more criteria determined by the Committee which are unrelated to the value of Common Stock and which may be granted in tandem with, or
independent of, other Awards under the Plan.

14.  Certain Restrictions



10

---



15.  Recapitalization or Reorganization



11

---



16.  Amendments; Termination

The Board or Committee may at any time and from time to time alter, amend, suspend or terminate the Plan in whole or in part;provided,
however,that any amendment which under the requirements of any applicable law or stock exchange rule must be approved by the stockholders of the Company shall not be effective
unless and until such stockholder approval has been obtained in compliance with such law or rule. No termination or amendment of the Plan may, without the consent of the Participant to whom an Award
has been granted, adversely affect the rights of such Participant under such Award. Notwithstanding any provision herein or in any Award Document to the contrary, the Board or Committee shall have
broad authority to amend the Plan or any Award under the Plan to take into account changes in applicable tax laws, securities laws, accounting rules and other applicable state and federal laws.

17.  Miscellaneous



12

---



13

---

QuickLinks