<PAGE>

                                                                   EXHIBIT 10.25

                         ACKNOWLEDGEMENT AND AGREEMENT


     This is to acknowledge that I have received a copy of the Company's
Employee Handbook and understand that it sets forth the terms and conditions of
my employment as well as my duties, responsibilities and obligations toward the
Company. I understand and agree that it is my responsibility to read and
familiarize myself with the provisions of the Employee Handbook and to abide by
the rules, policies and standards set forth in the Employee Handbook.

     I also acknowledge that, except for the policies of at-will employment and
arbitration, the terms and conditions set forth in this handbook may be
modified, changed or deleted at any time without prior notice to me and other
employees provided such changes are in writing and approved by the President of
Company. Any agreement of any kind pertaining to my employment must be in
writing.

     I also acknowledge that my employment with Company is not for a specified
period of time and can be terminated at any time for any reason, without cause
or notice, by me or by the Company. I acknowledge that no statements or
representations regarding my employment can alter the foregoing. As to the
circumstances in which employment may be terminated, this is the entire
agreement between me and the Company; there are no oral or collateral agreements
of any kind. I agree to abide by the terms of the Employment, Confidentiality,
Assignment of Inventions, and arbitration Agreement executed by me and the
Company.

     I further agree, in accordance with the Company's Arbitration Policy, that
I will submit any dispute arising under or involving my employment with Company
or the termination of employment to binding arbitration within one year of the
date the dispute first arose. I agree that arbitration shall be the exclusive
forum for resolving all disputes arising out of or involving my employment with
Company or the termination of that employment. I agree that I will be entitled
to legal representation, at my own cost, during any such arbitration. I further
understand that I will be responsible for half of the cost of the arbitrator and
any incidental costs of arbitration.



                                                    /s/ YING SHIAU
                                         ---------------------------------------
                                                            Employee's signature


                                                      YING SHIAU
                                         ---------------------------------------
                                                       Employee's Name [printed]


                                                         6/8/00
                                         ---------------------------------------
                                                                            Date




                              ITEX Employee Manual

<PAGE>

          EMPLOYMENT, CONFIDENTIALITY & INVENTION ASSIGNMENT AGREEMENT

     As a condition and in consideration of my employment with Integrated
Telecom Express, Inc., its subsidiaries, affiliates, successors or assigns
(together the "Company"), I agree:

1.   AT-WILL EMPLOYMENT. MY EMPLOYMENT WITH THE COMPANY IS FOR AN UNSPECIFIED
DURATION AND IS "AT-WILL" EMPLOYMENT. MY EMPLOYMENT MAY BE TERMINATED BY EITHER
THE COMPANY OR BY ME AT ANY TIME, WITH OR WITHOUT GOOD CAUSE OR FOR ANY OR NO
CAUSE, WITH OR WITHOUT NOTICE.

2.   CONFIDENTIAL INFORMATION. At all times I will hold in confidence and not
use, except for the benefit of the Company, or disclose without prior written
authorization, any Company Confidential information. "Confidential Information"
includes any and all proprietary information, trade secrets or know-how acquired
during my employment either directly or indirectly in writing, orally or by
observation, provided that Confidential Information does not include matter
which became publicly known and generally available in a lawful manner. In
addition, I will not improperly use or disclose any proprietary information or
trade secrets of any former or concurrent employer or of any other, nor will I
bring or keep any such information in any form on Company premises or property.

3.   INVENTIONS.

     (a)  INVENTIONS RETAINED AND LICENSED. I have attached as EXHIBIT A a list
describing all inventions, original works of authorship, protectible matter and
trade secrets in which I hold rights which are not assigned to the Company
(collectively "Prior Inventions"); if no such list is attached, there are no
such Prior Inventions. I grant the Company a nonexclusive, royalty-free,
irrevocable, perpetual, worldwide license to make, have made, modify, use, sell,
offer for sale, import, and otherwise distribute any Prior Invention which I
incorporate into any Company process, product and/or property.

     (b)  ASSIGNMENT OF INVENTIONS. I will promptly make full written disclosure
and I assign to the Company, or its designees, all right, title, and interest in
and to any and all inventions, works of authorship, protectible matter and trade
secrets which during my employment I may solely or jointly conceive or develop
or reduce to practice, or cause to be conceived or developed or reduced to
practice (collectively "Inventions"), except as provided in Section 3(e) below.
All protectible works of authorship which are made by me (solely or jointly with
others) within the scope of and during my employment are "works made for hire,"
as that term is defined in the United States Copyright Act.

     (c)  MAINTENANCE OF RECORDS. I will maintain adequate and current written
records of all Inventions, and these records will remain with and belong to the
Company.

     (d)  PATENT AND COPYRIGHT REGISTRATIONS. During and after my employment, I
will cooperate fully to secure, register and enforce the Company's rights in the
Inventions in any and all countries, including without limitation signing
appropriate documents. In and under all circumstances in which I fail to and/or
cannot execute such documents, I irrevocably designate and appoint the Company
and its designees as my agent and attorney, to execute and file any such
applications and do all other acts to further the prosecution, issuance and
enforcement of such registrations and rights.

     (e)  EXCEPTION TO ASSIGNMENTS. I understand that the provisions of this
Agreement requiring assignment of Inventions to the Company do not apply to any
invention which qualifies fully under the provisions of California Labor Code
Section 2870, but nevertheless will promptly advise the Company in writing of
any inventions that I believe meet the criteria of such Section.

     (f)  CONFLICT OF INTEREST, COMPANY EMPLOYEE MANUAL AND POLICY GUIDELINES.
During the term of my employment, I will strictly adhere to the requirements of
the Company Employee Manual, Conflict of Interest and all applicable Company
guidelines and policies.

     (g)  RETURN OF COMPANY DOCUMENTS. Immediately upon the end of my
employment, I will deliver to the Company (and will not keeping my possession,
recreate or deliver to any else) any and all tangible items and reproductions of
information developed by me pursuant to my employment with the Company or
otherwise belonging to the Company, and will certify my compliance with this
requirement in writing.

     (h)  NOTIFICATION. The Company may notify any third party, including
without limitation, any new or future employer, about my rights and obligations
under this Agreement.


Employment, Confidential Info & Invention Assignment Agreement     ITEX -C- 1997

                                      -1-
<PAGE>

     (i)  SOLICITATION OF EMPLOYEES. For a period of twelve months
immediately following my employment, I shall neither directly nor indirectly
solicit, induce, recruit or encourage any Company employees to leave their
employment, nor will I attempt or assist any others to do so.

4.   ARBITRATION AND EQUITABLE RELIEF.

     (a)  ARBITRATION. Except as provided in Section 4(b) below, any and all
disputes or controversies arising out of, relating to, or concerning this
Agreement, shall be settled exclusively by arbitration to be held in Santa
Clara County, California, in accordance with the rules then in effect of the
Asia Pacific Arbitration Association. The arbitrator may grant injunctions or
other relief in such dispute or controversy, and the arbitration shall include
provisions for protecting Company Confidential Information against
disclosure. The decision of the arbitrator shall be final, conclusive and
binding on the parties and judgment may be entered thereon in any court
having jurisdiction. The Company and I shall each pay one-half of the cost
and expenses of such arbitration, and each of us shall separately pay our
counsel fees and expenses.

     THIS ARBITRATION CLAUSE CONSTITUTES A WAIVER OF EMPLOYEE'S RIGHT TO A
JURY TRIAL AND RELATES TO THE RESOLUTION OF ALL DISPUTES RELATING TO ANY
AND/OR ALL ASPECTS OF THE EMPLOYER/EMPLOYEE RELATIONSHIP (EXCEPT AS PROVIDED
IN SECTION 4(B) BELOW), including, but not limited to, any and all claims for
violation of any federal, state or municipal statute, law and/or regulation,
including, but not limited to, Title VII of the Civil Rights Act of 1964, the
Civil Rights Act of 1991, the Age Discrimination in Employment Act of 1967,
the Americans with disabilities Act of 1990, the Fair Labor Standards Act,
the California Fair Employment and Housing Act, and Labor Code Section 201,
et seq.

     (b)  EQUITABLE REMEDIES. It would be impossible or inadequate to measure
and calculate the Company's damages from any breach of the covenants set
forth in sections 2 and/or 3. Thus, in addition to any other right or remedy
and without any requirement of a bond or security, if I breach any of such
sections, the Company will be entitled to any injunction from a court of
competent jurisdiction restraining such breach or threatened breach and to
specific performance.

     (c)  CONSIDERATION. Each party's promise to resolve claims exclusively
by arbitration is consideration for other party's promise to do the same, and
I am offered employment in consideration of and based upon my promise to
arbitrate.

5.   GENERAL PROVISIONS.

     (a)  GOVERNING LAW; CONSENT TO PERSONAL JURISDICTION. This Agreement
will be governed by the laws of the State of California, and I hereby
expressly consent to the personal jurisdiction of the courts located in
California for any lawsuit filed there against me by the Company.

     (b)  ENTIRE AGREEMENT. This Agreement sets forth the entire agreement
and understanding between the Company and me relating to the subject matter
herein and merges all prior discussions between us. No modification of or
amendment to this Agreement, nor any waiver of any rights under this
Agreement, will be effective unless in writing signed by the party to be
charged. Any subsequent change or changes in my duties, salary or
compensation will not affect the validity or scope of this Agreement.

     (c)  SEVERABILITY. If one or more of the provisions in this Agreement are
deemed void by law, then the remaining provisions will continue in full force
and effect.

     (d)  SUCCESSORS AND ASSIGNS. This Agreement will be binding upon my
heirs, executors, administrators and other legal representatives and will be
for the benefit of the Company, its successors, and its assigns.



/s/ YING SHIAU                               /s/ ILLEGIBLE
----------------------------                 ---------------------------------
EMPLOYEE SIGNATURE                           COMPANY SIGNATURE




Date: 6/8/00                    Print Employee Name: Ying Shiau
     -----------------                              --------------------------




Employment, Confidential Info & Invention Assignment Agreement       ITEX 1997

                                     -2-

<PAGE>

                                  AMENDMENT TO
         EMPLOYMENT, CONFIDENTIALITY AND INVENTION ASSIGNMENT AGREEMENT


        As a condition and in consideration of my continuing employment with
Integrated Telecom Express, Inc., its subsidiaries, affiliates, successors or
assigns (together the "Company"), I agree:

Paragraph 3(i) of the Employment, Confidentiality & Invention Assignment
Agreement that I entered with the Company upon being hired is amended, effective
immediately, to read:

(i) SOLICITATION OF EMPLOYEES. During, and for the period of twelve months
immediately following, my employment, I shall neither directly nor indirectly
solicit, induce, recruit or encourage any Company employees to leave their
employment, nor will attempt or assist any others to do so.

I understand that this paragraph formerly read as follows:

(i) SOLICITATION OF EMPLOYEES. For the period of twelve months immediately
following, my employment, I shall neither directly nor indirectly solicit,
induce, recruit or encourage any Company employees to leave their employment,
nor will attempt or assist any others to do so.




Agreed as of         6/8/00
            ----------------------.
                    (Date)


Signed:   /s/ YING SHIAU
       -------------------------------.


Printed Name:     Ying Shiau
             -------------------------.


Employment, Confidential Info & Invention Assignment Agreement     ITEX -C- 1997

                                      -3-

<PAGE>

       ATTACHMENT TO EMPLOYMENT, CONFIDENTIALITY AND INVENTION ASSIGNMENT
                                    AGREEMENT

                         CONFLICT OF INTEREST GUIDELINES

        It is the policy of Integrated Telecom Express, Inc., to conduct its
affairs in strict compliance with the letter and spirit of the law and to adhere
to the highest principles of business ethics. Accordingly, all officers,
employees and independent contractors must avoid activities which are in
conflict, or give the appearance of being in conflict, with these principles
and/or with the interests of the Company. The following are potentially
compromising situations which must be avoided. Any exceptions must be reported
to the President and written approval for continuation must be obtained.

        i.      Revealing confidential information to outsiders or misusing
confidential information. Unauthorized divulging of information is a violation
of this policy whether or not for personal gain and whether or not harm to the
Company is intended. (The Employment, Confidential Information and Invention
Assignment Agreement elaborates on this principle and is a binding agreement.)

        ii.     Accepting or offering (other than inconsequential) gifts,
excessive entertainment, favors or payments which may be deemed to constitute
undue influence or otherwise be improper or embarrassing to the Company.

        iii.    Participating in civic or professional organizations that might
involve divulging confidential information of the Company.

        iv.     Initiating or approving personnel actions affecting reward or
punishment of employees or applicants where there is a family relationship or is
or appears to be a personal or social involvement.

        v.      Initiating or approving any form of personal, social or other
harassment of employees.

        vi.     Investing or holding outside directorship in suppliers,
customers, or competing companies, including financial speculations, where such
investment or directorship might influence in any manner a decision or course of
action of the Company.

        vii.    Borrowing from or lending to employees, customers or suppliers.

        viii.   Acquiring any interest in real estate or other property of
interest to the Company.

        ix.     Improperly using or disclosing to the Company any proprietary
information or trade secrets of any former or concurrent employer or other
person or entity with who obligations of confidentiality exist.

        x.      Unlawfully discussing prices, costs, customers, sales or markets
with competing companies or their employees.

        xi.     Making any unlawful agreement with distributors with respect to
prices.


Employment, Confidential Info & Invention Assignment Agreement     ITEX -C- 1997

                                      -4-
<PAGE>


        xii.    Improperly using or authorizing the use of any inventions which
are the subject of patent claims of any other person or entity.

        xiii.   Engaging in any conduct which is not in the best interest of the
Company.

        xiv.    Disclosing, tipping, and/or trading upon any material non-public
information.

        xv.     Engaging in any activity which is prohibited by the securities
or other applicable laws of the United States of America or any other
jurisdiction with authority over the action in any manner relating to and/or
impacting the Company.

        Each officer, employee and independent contractor must take every
necessary action to ensure compliance with these guidelines and to bring problem
areas to the attention of higher management for review.

        Violations of this conflict of interest policy may result in discharge
without warning.


Employment, Confidential Info & Invention Assignment Agreement     ITEX -C- 1997

                                      -5-

<PAGE>


                                   EXHIBIT A


                           LIST OF PRIOR INVENTIONS
                        & ORIGINAL WORKS OF AUTHORSHIP



                                              Identifying Number
Title                    Date                 or Brief Description













 12  No inventions or improvements
-----


 X   Additional Sheets Attached
-----



Signature of Employee: /s/ YING SHIAU

Print Name of Employee: Ying Shiau

Date: 6/8/00


NOTICE: CALIFORNIA LABOR CODE SECTION 2870 EMPLOYMENT AGREEMENTS; ASSIGNMENT OF
RIGHTS provides:
     "Any provision in an employment agreement which provides that an employee
shall assign, or offer to assign, any of his or her rights in an invention to
his or her employer shall not apply to an invention that the employee
developed entirely on his or her own time without using the employer's
equipment, supplies, facilities, or trade secret information except for those
inventions that either:
     Relate at the time of conception or reduction to practice of the
invention to the employer's business, or actual or demonstrably anticipated
research or development of the employer.
     Result from any work performed by the employee for the employer.
     To the extent a provision in an employment agreement purports to require
an employee to assign an invention otherwise excluded from being required to
be assigned under subdivision (a), the provision is against the public policy
of this state and is unenforceable."




Employment, Confidential Info & Invention Assignment Agreement        ITEX 1997


                                     -6-

<PAGE>

PATENTS LIST

<TABLE>
<CAPTION>
Title                                                                             Date            Patent #
<S>                                                                               <C>             <C>
 1 Apparatus for detecting defect sizes in Polysilicon and source-drain
   semiconductor devices and method for making the same                            12/14/99        6001663
 2 Arrangement and method for detecting sequential processing effects
   in manufacturing using predetermined sequences within runs                       7/27/99        5930138
 3 Method and apparatus for inspecting manufactured products for
   defects in response to in-situ monitoring                                        4/20/99        5896294
 4 Method and apparatus for automated wafer level testing and reliability
   data analysis                                                                   10/13/98        5822717
 5 Apparatus for detecting defect sizes in Polysilicon and
   source-drain semiconductor devices and method for
   making the same                                                                 10/13/98        5821765
 6 Method for detecting defect sizes in Polysilicon and source-drain
   semiconductor devices                                                            10/5/99        5963780
 7 Method and apparatus for pattern recognition of wafer test bins                  7/28/98        5787190
 8 Arrangement and method for detecting sequential processing effects
   in manufacturing                                                                  6/2/98        5761065
 9 Defect management system for productivity and yield improvement                   6/2/98        5761064
10 Watchdog system having data differentiating means for use in
   monitoring of semiconductor wafer testing line                                   3/10/98        5726920
11 Arrangement and method for detecting sequential processing effects
   in manufacturing using predetermined sequences within runs                       2/10/98        5716856
12 Structures to extract defect size information of Poly and source-drain
   semiconductor devices and method for making the same                             9/23/97        5670891
13 Real-time in-line defect disposition and yield for forecasting system            1/28/97        5598341
</TABLE>