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                                                                   EXHIBIT 10.18


                                   BONUS PLAN

     1.   This Bonus Plan has been adopted by Maxim Integrated Products, Inc.
(the "Company") for the determination of annual incentive bonuses payable to the
Company's executive officers. This Bonus Plan shall be administered by the
Company's Compensation Committee. This Bonus Plan shall be in effect for the
Company's fiscal years 1998-2002, for payment of bonuses with respect to each
such fiscal year but to be determined and paid in the immediately following
fiscal year.

     2.   With respect to each fiscal year, there shall be created a pool (the 
"Bonus Pool") in an amount of up to 3% of the Company's pre-tax earnings, 
determined as follows:

          (a)  If the Company's earnings per share for that fiscal year are at 
least 30% greater than the Company's earnings per share for the immediately 
preceding fiscal year, an amount equal to 1.5% of the Company's pre-tax 
earnings shall be available in the Bonus Pool. If the growth in the Company's 
earnings per share for such period is less than 30%, then the amount available 
in the pool shall equal 1.5% times the actual percentage growth in earnings per 
share for such period divided by 30%.

          (b)  If the closing price for the Company's Common Stock on the last
trading day of that fiscal year is at least 30% greater than the closing price
for the Company's Common Stock on the last trading day of the immediately
preceding fiscal year, an amount equal to 1.5% of the Company's pre-tax earnings
shall be available in the Bonus Pool. If the growth in the Company's stock price
for such period is less than 30%, then the amount available in the pool shall
equal 1.5% times the actual percentage growth in the Company's stock price for
such period divided by 30%.

     3.   Within 90 days of the beginning of each fiscal year during the term of
this Bonus Plan, the Compensation Committee is to determine a formula for the
amount of the bonus payable to each executive officer, based on the same
performance criteria as set forth in paragraphs 2(a) and (b) above. The maximum
bonus payable to any executive officer in respect of any fiscal year is one half
of the Bonus Pool for that year.

     4.   After the end of each fiscal year, the Compensation Committee shall 
determine and certify the performance of the Company and each executive officer 
against the performance criteria set forth in paragraphs 2 and 3 above, and 
shall determine the amount available in the Bonus Pool and the amount of the 
bonus payable to each executive officer hereunder for such fiscal year.

     5.   The Compensation Committee reserves the right to pay any executive 
officer for any fiscal year a bonus in an amount less than the bonus determined 
pursuant to paragraphs 2 and 3, based on the Compensation Committee's 
determination of that executive officer's individual performance during the 
fiscal year. In making such determination, the Compensation Committee may 
consult with such parties, including the Company's Chief Executive Officer, 
seek such other input and take into account such factors as the Compensation 
Committee, in its sole discretion, may determine.