Exhibit 10.3

INTEGRATED TELECOM EXPRESS, INC.

2000 STOCK PLAN

(ADOPTED MAY 10, 2000)
(AMENDED MAY 18, 2001)

1.Purposes of the Plan.The purposes of this 2000 Stock Plan are:



Options
granted under the Plan may be Incentive Stock Options or Nonstatutory Stock Options, as determined by the Administrator at the time of grant. Stock Purchase Rights may also be
granted under the Plan.

2.Definitions.As used herein, the following definitions shall apply:



---



2

---



3.Stock Subject to the Plan.Subject to the provisions of Section 13 of the Plan, the maximum
aggregate number of Shares that may be optioned and sold under the Plan is 5,808,345 Shares plus an annual increase to be added on the first day of the Company's fiscal year beginning in 2002, equal
to the lesser of (i) 2,500,000 shares, (ii) 4% of the outstanding shares on such date or (iii) a lesser amount determined by the Board. The Shares may be authorized, but unissued,
or reacquired Common Stock.

If
an Option or Stock Purchase Right expires or becomes unexercisable without having been exercised in full, or is surrendered pursuant to an Option Exchange Program, the unpurchased
Shares which were subject thereto shall become available for future grant or sale under the Plan (unless the Plan has terminated);provided, however,
that Shares that have actually been issued under the Plan, whether upon exercise of an Option or Right, shall not be returned to the Plan and shall not become available for future distribution under
the Plan, except that if Shares of Restricted Stock are repurchased by the Company at their original purchase price, such Shares shall become available for future grant under the Plan.

4.Administration of the Plan.



3

---



5.Eligibility.Nonstatutory Stock Options and Stock Purchase Rights may be granted to Service
Providers. Incentive Stock Options may be granted only to Employees.

6.Limitations.

4

---



7.Term of Plan.Subject to Section 19 of the Plan, the Plan shall become effective upon its
adoption by the Board. It shall continue in effect for a term of ten (10) years unless terminated earlier under Section 15 of the Plan.

8.Term of Option.The term of each Option shall be stated in the Option Agreement. In the case of an
Incentive Stock Option, the term shall be ten (10) years from the date of grant or such shorter term as may be provided in the Option Agreement. Moreover, in the case of an Incentive Stock
Option granted to an Optionee who, at the time the Incentive Stock Option is granted, owns stock representing more than ten percent (10%) of the total combined voting power of all classes of stock of
the Company or any Parent or Subsidiary, the term of the Incentive Stock Option shall be five (5) years from the date of grant or such shorter term as may be provided in the Option Agreement.

9.Option Exercise Price and Consideration.



5

---



10.Exercise of Option.



6

---



7

---



11.Stock Purchase Rights.



12.Non-Transferability of Options and Stock Purchase Rights.Unless determined otherwise
by the Administrator, an Option or Stock Purchase Right may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or
distribution and may be exercised, during the lifetime of the Optionee, only by the Optionee. If the Administrator makes an Option or Stock Purchase Right transferable, such Option or Stock Purchase
Right shall contain such additional terms and conditions as the Administrator deems appropriate.

13.Adjustments Upon Changes in Capitalization, Dissolution, Merger or Asset Sale.



8

---



14.Date of Grant.The date of grant of an Option or Stock Purchase Right shall be, for all purposes,
the date on which the Administrator makes the determination granting such Option or Stock Purchase Right, or such other later date as is determined by the Administrator. Notice of the determination
shall be provided to each Optionee within a reasonable time after the date of such grant.

15.Amendment and Termination of the Plan.

9

---



16.Conditions Upon Issuance of Shares.



17.Inability to Obtain Authority.The inability of the Company to obtain authority from any regulatory
body having jurisdiction, which authority is deemed by the Company's counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in
respect of the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained.

18.Reservation of Shares.The Company, during the term of this Plan, will at all times reserve and
keep available such number of Shares as shall be sufficient to satisfy the requirements of the Plan.

19.Shareholder Approval.The Plan shall be subject to approval by the shareholders of the Company
within twelve (12) months after the date the Plan is adopted. Such shareholder approval shall be obtained in the manner and to the degree required under Applicable Laws.

10

---

QuickLinks