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                                                                   EXHIBIT 10.18

[LOGO APPEARS HERE]
                       Centillium technology Corporation

                      "Expanding Communication Bandwidth"

November 30, 1999

Mr. John W. Luhtala
224 Monterey Street
Santa Cruz, CA 95060

Dear John:

On Behalf of Centillium Communications, Inc., (the "Company"), I am pleased to
offer you the position of Vice President and Chief Financial Officer. You will
be reporting to A. Travis White, President and CEO of the Company.

You will be paid a salary of $154,000 (One hundred fifty four thousand dollars)
annually. Your base salary will be payable in accordance with the Company's
standard payroll policies (subject to normal required withholding). A sign-on
bonus will be granted in the amount of $25,000 gross, payable after thirty days
of employment. If you voluntarily leave the organization before one year of
continuous service, you will be required to pay back this bonus, in full. You
will accrue 3.69 hours vacation/ personal time per pay period, totaling twelve
days paid vacation annually. Your salary will be paid on a bi-weekly basis. All
company benefits begin on the 1/st/ day of the following month from your
employment date.

It will be recommended to the Centillium Communications, Inc. Board of Directors
that you be eligible to participate in the Centillium Communications, Inc. Stock
Option Program. Subject to this approval, you will be granted an option to
purchase 175,000 (One hundred seventy five thousand) shares of the Company's
Common Stock at an exercise price equal to the fair market value of the Company
Common Stock on the date of grant as determined by the Centillium
Communications, Inc. Board of Directors.

If Centillium Communications is acquired, merged, or significant change of
control occurs which impacts your job responsibilities is one of the following
ways, you and the company agree that your stock options would be accelerated by
one full year.
     .    Job elimination or if you are asked to leave the organization
     .    Job responsibilities were significantly reduced, changed or altered
     .    Forced to move to an unacceptable location

This acceleration of the vesting provision will be contained in your stock
option agreement.

Under rule 83(b) you will be eligible to exercise unvested options. This enables
you to recognize long term capital gains or losses and begins the process of the
one-year holding period. You should note that under certain circumstances, you
might be required to recognize income for income tax purposes upon exercising
options. Please consult your tax advisor, prior to exercising vested and
unvested options. Should you terminate your relationship with Centillium
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John Luhtala
Page Two

Communications, the Company has the irrevocable, exclusive option for a period
of ninety (90) days from such date, to repurchase up to that number of shares
which are unvested, at the original purchase price per share.

Your offer is contingent upon your agreement that you will not, during and after
your employment with Centillium Communications, Inc., improper use or disclose
proprietary information or trade secrets of any former or concurrent employer or
other person or entity, and that you will not bring onto the premises of
Centillium Communications, Inc., any unpublished document or proprietary
information belonging to any such employer, person, or entity, unless consented
to in writing by such employer, person, or entity.

Your acceptance of this offer represents the sole agreement between you and
Centillium Communications, Inc., no prior promises, representations or
understandings relative to any terms or conditions of your employment are to be
considered as part of this agreement unless expressed in writing in this letter.
Centillium Communications is an "at-will" employer which means that this
employment relationship may be terminated at any time, with or without good
cause or for any or no cause, at the option either of the Company or employee,
with or without notice.

This offer is contingent upon reference checks and is valid for four days from
the date of this letter, unless any other arrangements are made. Please indicate
your acceptance and start date by signing and returning the enclosed copy of
this letter.

Sincerely,

/s/ Travis White

A.  Travis White
President and CEO

                              The foregoing terms and conditions are hereby
                              accepted:

                              Start Date:  12/8/99
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                              Signed:  /s/ John Luhtala
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                                       John Luhtala

                              Date:    11/30/99
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