Good day. Welcome to the CEVA Inc. fourth quarter and full year 2020 earnings conference call. All participants will be in a listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one. Please note that this event is being recorded. I would now like to turn the conference over to Richard Kingston, Vice President of Market Intelligence, Investor and Public Relations. Please go ahead. Thank you Cole. Good morning, everyone, and welcome to CEVA's fourth quarter and full year 2020 earnings conference call. I'm joined today by Gideon Wertheizer, Chief Executive Officer, and Yaniv Arieli, Chief Financial Officer of CEVA. Gideon will cover the business aspects and the highlights from the fourth quarter and provide general qualitative data. Yaniv will then cover the financial results for the fourth quarter and also provide qualitative data for the first quarter and the full year 2021. I'll start with the forward-looking statements. Please note that today's discussion contains forward-looking statements that involve risks and uncertainties as well as assumptions that, if they materialize or prove incorrect, could cause the results of CEVA to differ materially from those expressed or implied by such forward-looking statements and assumptions. Forward-looking statements include guidance and qualitative data for the first quarter and full year 2021. Optimism about 5G base station RAN deployment in China and relationship with ZTE and the opportunities presented thereby. Optimism about the continued momentum in our connectivity sensing and AI technologies. Ramp-up from existing Wi-Fi 4 and Wi-Fi 5 customers. Optimism that our Bluetooth technologies will allow us to penetrate the high-volume smartphone market. Our belief for strong licensing revenue in 2021 and potential new licensing engagements. Our belief that our royalty growth drivers will more than offset the decline in royalties from the 5G smartphone supplier switch. For information on the factors that could cause a difference in our results, please refer to our filings with the Securities and Exchange Commission. These include the scope and duration of the pandemic, the extent and length of the restrictions associated with the pandemic, and the impact on customers, consumer demand, and the global economy generally. The ability of CEVA's IPs for smarter connected devices to continue to be strong growth drivers for us. Our success in penetrating new markets and maintaining our market position in existing markets. The ability of new products incorporating our technologies to achieve market acceptance. The speed and extent of the expansion of the 5G and IoT markets. Our ability to execute more non-handset baseband license agreements. The effect of intense industry competition and consolidation, and global chip market trends. CEVA assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates. With that said, I would now like to hand the call over to Gideon. Thank you, Richard. Good morning, everyone, thank you for joining us today. 2020 was an extraordinary year with the COVID-19 pandemic accelerating the adoption of new technologies and usage models while presenting uncertainties and enormous operational challenges worldwide. Notwithstanding the circumstances, CEVA had exceptional year with all-time high revenue in both licensing and royalties, substantial market expansion in the 5G RAN, Wi-Fi 6, and automotive spaces. I will allude to these developments in more detail later in the call. Fourth quarter was another excellent quarter with revenue and EPS significantly ahead of our expectations. Total revenue for the fourth quarter of 2020 came in at $28.1 million, our second highest quarterly revenue on record. The licensing environment continued to be healthy at $12.1 million for the quarter, with a good demand for our Wi-Fi, Bluetooth, and audio DSP products. We signed a record equaling 21 new agreements, of which 16 were for connectivity and five were for smart sensing. Seven of those agreements were with first-time customers. Target product for our technology includes 5G smartphone, TWS earbud, cellular IoT for asset tracking, and wide variety of other IoT devices. Late in the quarter, we signed a comprehensive and sizable license agreement for our connectivity portfolio with a key OEM in the mobile space that internalizing the development of Wi-Fi and Bluetooth technologies and intend to deploy our connectivity portfolio across all of its 5G smartphone, TWS earbuds, and other smartphone-related products. This agreement, along with others that we have in our pipeline, reinforce our belief for a stronger and another record year in licensing revenue for 2021. Royalty revenue came in at all-time record high $16.1 million, up 19% year-over-year. Seasonal strength across our IoT market and strong shipments of 4G smartphones were the key drivers to this exciting record. For the second quarter in succession, we reported all-time high royalty revenue from our Bluetooth, Wi-Fi, and sensor fusion products. For the full year 2020, revenue came in at record setting of $100.3 million, up 15% from 2019. This marks the first time that CEVA has crossed the $100 million annual revenue threshold a year ahead of our expectation. Licensing and related revenue at a record year with $52.5 million, up 10% from last year. We continue to expand our customer base with a record of 55 license agreements signed, of which 17 were first-time customers. Annual royalty revenue came in an all-time high $47.8 million, up 22% as compared to 2019. Royalty revenue from our base station and IoT product category grew 72% year-over-year to $22.3 million. As the momentum for our large and diverse customer base across multiple end markets continues. Royalty revenue from handset declined slightly year-over-year, down 3% to $25.5 million. Unit shipment of CEVA-based product grew 27% year-over-year to more than 1.3 billion units, with a record 750 million units from our base station and IoT customers. In perspective, 2020 was a landmark year for both CEVA and its industry. The global pandemic highlighted the impact connectivity has on our lives and acted as a catalyst for rapid change to our digital transformation. This presents a unique set of opportunity for CEVA differentiated technologies and operational agility, in particular in four key markets: 5G RAN, Wi-Fi, TWS earbuds, and automotive. Let me take the next few minutes to elaborate on these growth drivers and the anchors CEVA has already in place in these lucrative markets. 5G RAN. 5G offers data rate and ubiquitous connectivity. The fast rollout of 5G networks today is predominantly aimed at smartphone use case. According to Ericsson most recent mobility report, by the end of 2020, over 1 billion, or 15% of the world population, live in 5G coverage area. China in particular is very advanced with 70% of the global 5G connections according to GSM Association. Beyond smartphone, 5G offer new growth opportunities in regards to URLLC and IoT application. This application will be the center of next-generation technology deployment in industrial, robotics, AR and autonomous cars. The digital transformation and the new application 5G enables presents sizable opportunity for CEVA 5G RAN technologies beyond our existing incumbency in baseband. This specifically applies to the growing use of active antenna, a new antenna technology that combines arrays of antenna with DSP to process complex algorithms such as Massive MIMO and beamforming for more precise steering of the antenna signal, which gains substantial boost in capacity and energy efficiency. The emergence of O-RAN and V-RAN, which aims to transform the telecom industry from relying on proprietary platform from limited number of OEM to disaggregate network with open interfaces and multitude of merchant chips from incumbents and new suppliers. Recent research is expecting Open RAN to account for 58% of the overall RAN CapEx spending by 2026. With our second-to-none competitive edge in DSP processor, we are able to empower our existing and upcoming customers to innovate and quickly expand their market reach to the remote radio unit and address new opportunities in the RAN space like private network, small cells, private wireless access, and O-RAN. We are encouraged by the progress ZTE has made in the 5G RAN space, growing its share in the global RAN market from 8%-11% on a year-over-year basis according to Dell'Oro Group, and we expect other customers of ours to go into production in 2021. Wi-Fi. Wi-Fi is deployed in over 5 billion smartphones and more than 300 million hotspots today. Cisco estimates that more than 50% of the global mobile traffic is offloaded to Wi-Fi, and this is set to grow to over 70%. AT&T noted that its network experienced 90% Wi-Fi data growth during the pandemic. The new Wi-Fi standards, Wi-Fi 6 and Wi-Fi 6E, provide substantially higher data rates, up to 9.6 Gbps versus 1.3 Gbps in prior generation Wi-Fi 5. Wi-Fi 6 also presents a sizable opportunity beyond smartphone and PC through proliferation of connected IoT devices such as smart home appliance, smart TV, smart speaker, connected cars and wearables. Our RivieraWaves Wi-Fi 6 IP is at the forefront of the Wi-Fi 6 upgrade cycle and the only IP with successive record of accomplishment. We have signed to date more than 10 Wi-Fi 6 customers, and our existing Wi-Fi 4 and Wi-Fi 5 customer shipment grew more than sixfold in 2020, the start of significant expected ramp-up. As I noted earlier, Wi-Fi 6, along with our Bluetooth technologies, brings us opportunities to front penetrate the high volume market of smartphones as more OEMs are looking to internalize wireless connectivity technology as well as semis that look to take advantage of our leadership in the Wi-Fi 6 and Bluetooth domain. TWS earbuds. The TWS earbuds market presents a lucrative opportunity for CEVA due to its size and roadmap. In IDC, by 2020, the TWS segment reached 234 million sets and projected to reach 400 million sets by 2024, representing a CAGR of 14%. The pandemic has expedited the proliferation of TWS as more people have to work or study from home and require high-quality earbuds to ensure good experience. Large handset OEM have recently decided to remove complementary earbuds from new phone packages, paving the way for a large merchant market for TWS earbuds. CEVA already has a strong presence in TWS earbuds space with our RivieraWaves Bluetooth IP. Overall, our Bluetooth technology has been adopted by more than 80 semis and OEM today and empowers more than 520 million devices in 2020, up 44% year-over-year. Furthermore, the future TWS earbud design will progressively seek to add more functionalities while dealing with the challenges of finite space and battery life. Among those functionalities are noise cancellation for adverse environmental conditions, voice recognition, AI, and sensors for activity and health tracking, of which relates to technology that CEVA owns. In the coming weeks, we will officially announce the world's first comprehensive and open platform for TWS earbuds and hearables that we license. We have already started to introduce this high-value differentiate IP to lead customer and expect to conclude the first license agreement shortly. Automotive. The automotive market represents 9% of the global semiconductor consumption of $41 billion in sales. Selling into the space requires overcoming large entry barriers, and it commonly takes between three to five years for semiconductor vendors using new technology to qualify a design at tier-one OEM before going into production. With that said, as soon as production starts, the product life cycle in automotive is longer than most other markets, ensuring stable source of revenue and profit and plays well for CEVA R&D investment strategy. In recent years, the automotive industry has undergone a massive technology transformation driven by adoption of ADAS and electrification. ADAS applications such as lane departure warning, emergency braking, parking assistance, driving monitoring system require high performance DSP to process the sensory data captured by cameras, radar, lidars, and other sensors surrounding the vehicle. Automotive electrification is gaining momentum as a result of increased emphasis of government to lower CO2 emission as threat of climate change produce more harsher storms, wildfire, and floods. Battery management system plays a key role in electrical powertrain in charge of keeping high efficiency and longer life of the battery set. Powertrain vendors and OEMs have recently started to use DSPs along with AI to boost the performance of the battery systems for longer drives per charge in the adverse environment and use condition. Leading tier ones and OEM are increasingly receptive to new DSP advancement and the collaborative business model that CEVA proposes in the areas of ADAS and powertrain. Our latest SensPro2 DSP architecture, the world-foremost DSP for sensor processing, provide unified architecture for real-time monitoring and AI processing of sensory data extracted from radar, camera, lidar, cellular V2X, and variety of environmental sensor. Our CDNN AI Toolkit is able to quantize, prune, and optimize neural network, and speed up neural network inference processing, a crucial requirement for fast response time of the vehicle. These core technologies and competencies were the drivers for two key agreements we signed during 2020 with two of the largest automotive semis that plan to use our technology for powertrain and Level 2+ ADAS. We will continue in the coming year to strengthen our relationship with our two key customer and seek to engage with other stakeholders, capitalizing on core technologies and our growing reputation in automotive. It also align with CEVA's strong focus and commitment to environment improvement technologies and products. Before my closing remark, we would like to express our concern and sympathy for those affected by our global pandemic. The ongoing situation presents us with numerous challenges, and we continue to focus on the safety of our employees, customers, and suppliers. Our record-setting results for the year demonstrate the breadth of our technology portfolio, its resiliency to global events, and primarily our employees' focus and devotion to maintain and even exceed aggressive targets that we set for ourselves. As we enter 2021, we look to continue to be at the forefront of the digital transformation and capitalize on our core technology and customer diversity to grow our market share and maximize our return from growing industries, in particular 5G RAN, Wi-Fi, TWS, earbud, and automotive, which I discussed earlier. These industries present multiyear growth opportunity for connectivity, sensing, and AI technology, and we are well positioned to take advantage of it. Finally, I would like to take this opportunity to thank all of our employees for their hard work, innovation, and fantastic execution. I would like to extend my thanks to our partner, suppliers, and last but not least, our investors for their confidence and support. We wish you all healthy, happy, and prosperous year. Please stay safe. With that said, I now turn the call over to Yaniv who will outline our financials and guidance. Thank you, Gideon. Good morning, everyone. I'll start by reviewing the results of our operations for the fourth quarter of 2020. Revenue for the fourth quarter was $28.1 million, down slightly as compared to $28.3 million the same quarter last year. The revenue breakdown is as follows. Licensing-related revenue was approximately $12.1 million, reflecting 43% of total revenue, 8% lower as compared to the fourth quarter of 2019. Royalty revenue was a record $16.1 million, reflecting 57% of our total revenue, up 19% from $13.5 million for the same quarter last year, and up 28% sequentially. Base station and IoT royalty revenue contributed $6.4 million in the quarter, up 50% year-over-year with an all-time record royalty contribution from our Bluetooth, Wi-Fi, and sensor fusion product lines. Quarterly gross margin was 91% on GAAP and 92% on non-GAAP basis, both higher than expected. Non-GAAP quarterly gross margin exclude approximately $0.2 million of equity-based compensation expenses and $0.2 million-For the amortization of other assets associated with Intrinsix investment. Our total OpEx for the fourth quarter was $23.2 million, just over the high end of our guidance, mainly due to accrued compensation-related benefits and commission associated with the higher 2020 revenues. OpEx also included an aggregated equity-based compensation expense of approximately $3.4 million, amortization of acquired intangible assets associated with the acquisition of Hillcrest and Intrinsix of $0.6 million. Our total OpEx for the fourth quarter, excluding these items, were $19.3 million, about $500,000 above the high end of our guidance, due to the same reasons I just highlighted. U.S. GAAP net income for this quarter was $0.6 million and diluted earnings per share was $0.03 compared to net income of $3.1 million and $0.14 for the fourth quarter of 2019. Non-GAAP net income and diluted EPS for the fourth quarter were $4.7 million and $0.20 respectively, significantly higher than our internal estimates. Of note, the fourth quarter 2020 financials include a $2 million tax expense due to withholding taxes which cannot be utilized in future years. Other related data. Shipped units by CEVA's licensees during the fourth quarter of 2020 were a record 484 million units, up 39% sequentially and 35% for the fourth quarter of 2019 reported shipments. Of the 484 million unit ships, 217 million units, or 45%, were for handset baseband chips, reflecting a sequential increase of 45% from 149 million units of handset baseband chips during the third quarter of last year, and an 11% increase from 196 million units shipped a year ago. Our base station IoT product shipments reached a second sequential all-time record high of 268 million units, up 34% sequentially and up 63% year-over-year. Of the 268 million units, Bluetooth was 187 million units, a new all-time quarterly record high. As for the year, our total shipments increased 27% year-over-year to over 1.3 billion units, an all-time record high, which equates to approximately 42 CEVA-powered devices sold every second in 2020. Annual shipments of handsets were flattish year-over-year at around 575 million devices. After a slow start of the year, handset shipments from a large China-based customer grew significantly in the second half of the year. Base station IoT product royalty revenue continued to grow and reached a new record high of $22.3 million, up from $13 million in 2019 and $8.9 million in 2018. In terms of units, base station and IoT product shipments were up 60% year-over-year to 750 million devices. Overall, we surpassed the $100 million total revenue milestone for our very first time. This is a significant accomplishment that was achieved as a result of an all-time high licensing and royalty revenue that we have caught. As for the balance sheets. As of December 31st, 2020, CEVA's cash equivalent balances, marketable securities, and bank deposits were $160 million. We did not repurchase any shares in Q4 and have approximately 498,000 shares available for repurchase. Our DSOs for the fourth quarter was 48 days. During the fourth quarter, we generated $6.8 million of cash from operation. Our depreciation and amortizations were $1.5 million, and purchase of fixed assets was $0.4 million. At the end of the year, our head count was 404 people, of which 335 were engineers. Slightly higher than a total of 398 people at the end of September, and 22 people higher over 382 people at the end of 2019. Now for the guidance. We expect 2021 to be another growth year for CEVA as the momentum for our business continues. We are forecasting total revenue to be just over $106 million for 2021, with growth in both royalties and licensing. Specifically, in regards to royalty revenue forecast, we are taking a wait-and-see approach as the semiconductor industry has experienced extended lead time for chip orders and lean inventories, which we expect to last through the first half of the year. Our licensing business continues to be solid with growing opportunities in 5G, Wi-Fi 6, TWS earbuds, and automotive, as Gideon elaborated earlier. We're targeting another record year for licensing, which will set the stage for additional new streams of royalties in years to come. On the royalty front, we're expecting a decline in royalties from a leading smartphone OEM who has switched to another baseband supplier for its recent launched 5G smartphone line. With that said, we do maintain our presence in its 4G smartphones and are still expected to ship volumes this year. We also see continued progress for our China-based customer who has recently regained good momentum in low-cost smartphones for emerging markets, and has also recently launched its first CEVA-powered 5G chip in China. In our base station RF product category, we expect to continue to outgrow the market we are targeting. Overall, we believe that new royalty growth drivers will more than offset the decline in royalties from the 5G smartphone supplier switch. On the expense side, we forecast approximately $3 million additional expenses in 2021 versus 2020 as relates to the devaluation of the U.S. dollar compared to other currencies we use, mainly the shekel and the euros. On the cost of goods, we expect higher non-GAAP expenses of approximately $500,000 due to more sensor fusion chip sales and other project expenses. In OpEx, with a strong licensing execution in 2020 and even stronger expectations for 2021, we will continue to support these new customers and reinforce our leadership with disciplined investment in R&D. Our overall non-GAAP OpEx increase will be approximately $6 million. Half of it, $3 million, is attributed to the FX I just stated. Equity-based compensation is forecasted to be approximately the same as 2020, around $13.3 million. Annual gross margins are forecasted to be similar to 2020 in the region of 89% on a GAAP basis and 91% on non-GAAP basis. Interest income is forecasted to be slightly lower than 2020 due to the lower interest rate environment at around $600,000 per quarter. Tax rate is expected to be higher on an annual basis due to higher taxes in France for our RivieraWaves business, the Bluetooth and Wi-Fi. Approximately 22% of pre-tax income on a non-GAAP basis compares to 2020 levels, excluding $3 million of expenses due to withholding taxes, which could not be utilized in future years. Last, share count for 2021 is expected to be approximately 23.5 million shares. Specifically for the first quarter of 2021, gross margin is expected to be approximately 89% in GAAP and 91% in non-GAAP basis. OpEx for the first quarter is expected to be slightly higher than the fourth quarter of 2020. Non-GAAP OpEx is expected to be in the range of $23.2 million-$24.2 million. Of our anticipated total operating expenses for the first quarter, $3.1 million is expected to be attributed to equity-based compensation expenses and $0.6 million to amortization. On the back, our non-GAAP OpEx for the first quarter is forecasted to be in the range of $19.6 million-$20.6 million. Net interest income is expected to be about $600,000. Taxes for the first quarter, a bit higher than explained, $500,000 on both GAAP and non-GAAP basis. Share count for the first quarter, expected to be around 23.3 million shares. Nicole, you could now open the Q&A session, please. We will now begin our question-and-answer session. To ask your question you may press star then one on your touch tone phone, if you are using a speaker phone please pick up your handset before pressing the keys. To withdraw your question please press star then two. At this time we will pause momentarily to assemble the roster. Our first question today will come from Matt Ramsay with Cowen. Please go ahead. Thank you very much. Good morning, everybody. Congratulations, guys, on a strong year, which was challenging from a number of angles, obviously. Gideon, I wanted to start. Over the last few quarters, particularly today, you've talked much more about the evolution of Wi-Fi for your business, both on licensing and what it might mean for future royalties. I was particularly interested in the comments you made about some large vendors going internal or vertically integrated for their connectivity platforms, not just Wi-Fi, but other types of connectivity that might bring home accessories, wireless earbuds, et cetera. Maybe you could talk a little bit more about that, how pervasive you're seeing that across OEMs, what the merchant suppliers of some of those chips are doing, which may also be your customers, and just how you're seeing that market evolve. What kind of royalty contribution are we thinking about for this business in the next two or three years as it becomes more a material part of your revenue? Thanks. Hi, Matt. I think now, when it comes to Wi-Fi and Bluetooth and IoT in general, there are two aspects to this. One is what we call internally IoT. Basically, we make a distinction. I saw other people did the same distinction between IoT and non-IoT. Non-IoT is basically the PC, the smartphone, and the tablet. The IoT is all the other devices that I use, which smart TV, smart home, cars, everything that are not these three categories. In 2020, this was the first time that the IoT exceeded or surpassed the non-IoT, meaning that you have more shipment of devices that are not PC, smartphone, and others, and tablet. By 2026, this is going to be 30 billion units. That's the landscape. That's the opportunities that we are targeting in the, what we call the IoT, and for that purpose, we have all the wireless connection. We have 5G, we have Wi-Fi, we have Bluetooth, and we have cellular IoT or the Narrowband IoT. We cover all these angles and whoever of these 30 billion try to build a product, it checks with us in terms of connectivity. Now, the second aspect is the smartphone. Smartphone is a big market, well-defined market, recently become a little bit fragmented in terms of suppliers, OEM are building. What we found out is that they come to us as part of their internalization that we do where they build the modem, and they also talk to us in modem. They come to us and say, "We need your connectivity technology because we are going to integrate it into our SoC. If we build this SoC, let's integrate those parts and not be dependent on Qualcomm, MediaTek, and the other guys that dominate the merchant chip market. Interestingly enough, it's not just OEM. We are talking with semiconductor players that say, "When it comes to Wi-Fi, maybe we'll expedite our journey, our entrance into this market, and we license technology because you have." It's another angle, which we all the time try to be in the mobile space, from different angles. We have the 5G, we have vision, we have sound, and we have connectivity. Anything that relates to mobile is important to us as well. No, thank you. Thank you for the thought there. Much appreciated. I guess a follow-on question in a different market. You gave a lot of stats, and Yaniv did as well in the prepared script about the progress in the base station market. With ZTE, maybe you could give us a little bit of an update on the timing of how you're expecting the rollout to take place with Nokia as we get into 2021. Are we on the precipice of that now, and is that baked into some of the royalty comments for calendar 2021? If there's any comments you could give us about how big that base station opportunity is and the royalty expectation for 2021, that would be really helpful. Thank you. It's a bit delicate to start speaking about specific customer. No doubt that we have the two names that you mentioned. ZTE is shipping, and ZTE is strongly positioned in China, in emerging market, and the momentum, we don't see any reason it will not continue. When it comes to the second customer, let's wait. They are public. They speak what they say. As we say, the prepared remark, we think they are in the prime time now. They have the platform to build this momentum there as well. I would add, in our forecast for this year, we do take both of our key customers in production, different timing and different volumes, but we do have that already partially baked in our expectations and plans. Got it. Thank you. Last one from me. I noticed that the smartphone units for royalties in the fourth quarter were up year-over-year. The revenue and the revenue per unit was down a bit. I presume that was lower units to Intel and some growth from emerging markets, particularly with Spreadtrum making a bit of a rebound. Do I have that right? What are your expectations for your China-based fan customer? It sounds like some increased momentum there, globally. Is that also baked into your forecast for 2021? Thank you. Thanks, guys. Sure. Yes, there's no doubt that the year started slow, especially for our China-based customer with COVID and the shutdown. Some of the Indian market was very slow. They got into the shutdown later in Q2. It had a big effect on us, and on them throughout the year. The second half of the year was strong, both from Intel and from Spreadtrum. Obviously, we did not have the new iPhone 12 in Q4, which we did have a year ago. The rest of the momentum from the other models and the Chinese guys did push up the units. On an annual basis, although we did not have 100% of the U.S. OEM, which we did in 2019, we came in flat on overall units and almost in dollars as well. At least for last year, we did not feel the hit of this exchange or change in vendors. As we said, in 2021, we believe that number will decrease a bit, but overall, we will be able to more than offset it from the base station and IoT type of devices. Thanks, guys. Appreciate it. Thank you. Our next question will come from Suji Desilva with ROTH Capital. Please go ahead. Good morning, again, Yaniv. Congratulations on the progress here. Thanks. Maybe, Yaniv, in the licensing area, can you talk about the new quarterly sustainable range would be, or annual, just to give a sense of how you think licenses can progress? Yes. I think, we hit the new record both in dollars and number of deals, 55 deals. This quarter was very strong with 21 deals. We don't necessarily recognize all of those deals. Specifically in Q4, we had a handful of customers, new customers for us. Some of them are startups, some of them that we were more concerned, we can upfront the payment before we release the technology. We did not recognize every one of them. It's the wrong math to do to take the licensing revenues and divide it by 21. It's a bit of a different number. With that said, some of these guys that, as soon as they pay us, we will deliver and be able to recognize, hopefully in Q1. Maybe some will take longer. We'll see. An excellent pipeline to start the year. Licensing for us right now, looking at Q1, it's strong. I hope I managed to give you the colors there you asked about. Yes. That's very helpful. Perhaps, a bigger picture question on the royalty growth you're having. As we look ahead to calendar 2021, what are two of the three royalty growth areas that you're most excited about year-over-year? Hi, Suji. I think when we say the IoT at large, I said also to Matt, answered to Matt as well, the category of outside of the mobile and PC, whether it's a Wi-Fi, whether it's a Bluetooth, whether it's a cellular IoT, we see a big momentum there. I mean, tons of product coming very fast. I mean, all sort of product. If you go to Asia, I cannot think of any electronic product that doesn't come with connection to the internet. That's the excitement and that's what we are going to see a strong impact in the coming year. The other category, of course, is the 5G base stations. Here, I think in China this year is going to be stronger than last year, the second customer is coming out as well. What ahead of us, and we cannot see it now, is the new use cases of 5G. In the prepared remarks, I mentioned private networks. You have so many manufacturing factories that are going into a private network where they have their own cellular network secured and reliable, and the small cells and fixed wireless access. These are all designs that we see the rollout of this one, but when it becomes a really mass market could be this year, could be next year. Okay. Lastly, Oh, go ahead. Sorry, Yaniv. What I'm saying is when you go to small, say, private fixed wireless access, you speak about volume, you speak about of the millions of the products. Okay, great. Lastly, on connectivity, Bluetooth very strong, over 500 million units last year. What's the expectation for Wi-Fi units relative to Bluetooth? Is it an order of magnitude lower with a higher ASP, or can it approach something like a Bluetooth size unit market? Understanding the Wi-Fi TAM would be helpful. Wi-Fi is a growing market, both for us and overall the world as well, and much more used and adopted these last couple of years than four or five years ago. When we bought RivieraWaves back in 2014, nobody was using IP for Wi-Fi. It was just merchant ships at the time. All this has completely changed with dozens of deals that we have signed. 6-fold unit growth in 2020, and I would add that to Gideon's list. Your first question, on some of the exciting opportunities, Wi-Fi unit growth in 2021, for sure needs to climb significantly with just many more products that are out there. Okay. Thanks, guys. Thank you, Suji. Our next question will come from Tavy Rosner with Barclays. Please go ahead. Hi. Thanks for taking my questions. Congratulations on the strong results. I just wanted to get back to the guidance for 2021. Maybe I didn't hear properly. With regards to the royalty forecast, you mentioned that you guys are taking a wait-and-see approach because of some of the slowdown in the semi industry. I guess, do you have a way to normalize that, assuming that there is a recovery sooner than expected, how meaningful would it be to your revenue forecast? Hi, Tavy. Good morning. Let me one thing correct you, really important, that there is no slowdown in the semiconductor industry. The problem is the opposite. There is huge demand in the semiconductor industry all over the place, this what causes the inventory issues of very lean inventories and the long lead times. The foundry are just fully utilized. It's a great problem to have if you're in the semiconductor space. It's not great if you're an OEM you need to get those chips, you need to build those cars and get them out the door. That's where the problem is. Eventually, when there will be enough manufacturing capabilities, not demand, to fulfill the demand, we should see both our customers ship more for us to recognize more revenue on these royalties. This is what we alluded to. You could see it in many companies in the semi space that we reported recently. We don't know. We know we are not the manufacturer. We don't have that crystal ball. We just see what's going on in the industry, and we have basically exactly as you said, the wait-and-see approach, and let's see what it comes up. Last year's issues with Corona and shutdowns and demand, at least how the COVID-19 started, is completely different than where the market is today and the need for much more digitization, which we talked about, and we are seeing all over the place with a lot of the devices in full production. Great. Thanks for the clarification. Sure. Thank you. Our next question will come from David O'Connor with Exane BNP Paribas. Please go ahead. Great. Good morning. Thanks for taking my questions. One or two from my side. Maybe firstly, one for you, Yaniv, on the base station IoT. What's the assumption there for 2021? You did 72% in 2020 and 50% in Q4. Is it +50%? Is that something you can maintain through 2021? Also, can you speak maybe just on the assumption around the first half royalty growth versus the second? I have a follow-up. Thanks. Sure. We are not breaking down the royalties and licensing this year, because it's quite difficult to do, and many companies have stopped at all giving guidance or qualitative data. We are trying to help out with the models and to help out with our best understanding of different industries and giving impact out many industries that we play in. It's really hard to put all that in place. We did take growth in overall growth. We do believe that we'll be able to grow each one, both of the licensing and the royalty revenue streams for us. It's just too hard at this point of time to understand how this will be divided between the two. I think we just need to take it one quarter at a time and see how things progress. On the royalties, again, like every year, there's ups and downs. There's a lot of demand right now. I think seasonality in Q1 in the semis is not going to be like prior years. It could be stronger than in the past. On the other hand, you have less new phones that are introduced usually in the first quarter and more towards spring. We stop when ASC 606 started, and we don't report in arrears, but we really need to ask all the very long list of customers what they forecast for Q1. Share not with you, not with us, unfortunately. Let's take it step by step. What is under our control, and we do know is the licensing, at least for the first part of the backlog, is strong. Okay. Understood. Maybe a question for Gideon. The strategic agreement with the top-tier smartphone OEM, is this a new customer for CEVA? Can you give us any more detail as to the geography there and how long that licensing deal was in the works? Thank you. It's a new customer for CEVA. It's in Asia, one of the big Asian guys. Beyond that, you can connect the dots, but it's a sizable customer, like any branded OEM. Understood. Thank you. One last one, if I could squeeze one in on the open platform you talked about for the TWS earbuds. Can you help us just gauge the level of interest there from customers? You did talk about one customer, potentially an early adopter there. What is the differentiation of that platform versus either what merchant guys have or what other competitors have? Thank you. David, I still apologize. We are going to come out with this product in the coming weeks. I don't want to take the surprise out of our marketing people. The only thing that we say, the TWS, it's a complex technology. You have advanced audio, you have the connectivity, you have all sort of sensors inside. CEVA is the only company today in the IP space that has all these pieces, and the idea is to put them together in an IP package. It's a very unique offering in the IP, and when we discuss with customer about this product, they're all extremely happy about it because the complexity to build a product like the AirPod is enormous. Now the market, because of the fact that people are basically looking for merchants product, it's a huge volume. I think people want to go fast into this market, try to differentiate, and we can give them the baseline that saving a lot of R&D and risk in a project. That's helpful. Thanks, guys, and congratulations on the strong results. Thank you. Thank you. Our next question will come from Martin Yang with Oppenheimer. Please go ahead. Hi, Gideon and Yaniv. My first question is on your TWS market, perhaps following up on the previous analyst. How fast do you see more functionalities getting integrated into those headsets? Maybe can you help us conceptualize the new dollar content or additional dollar content you will be able to secure once more functions are integrated? Thanks. It's a question that we don't really answer about, if you meant the ASP in the chip. The idea is to take our ASP of Bluetooth, which is roughly $0.01 or even below, and to by far increase it, because the complexity or the comprehensiveness of this technology is much more. That's the strategy in place, meaning take advantage of the fact that we have more than 80 customers doing design with our connectivity technology, and by combining with other technology to give them higher value and higher ASP for us. I thought about that. Can you maybe help us to understand how fast do you think the new functionalities will be implemented in TWS? Are you seeing any major customers start to integrate more complex functionalities in this year's models? Or maybe are they start talking about more features for future product roadmaps? Usually, in connectivity, it takes about one year design cycle, and depending when we do the license, I believe. Hopefully, you'll start seeing the second half of 2020, probably next Christmas season, you'll start to see this product in the market. Got it. My final question is on Wi-Fi 6. Based on your current customer engagement, what are the new functionalities are you seeing in end product that is realized by Wi-Fi 6, which is not available in previous generations products? Wi-Fi 6 is a new standard for connectivity. Wi-Fi 6E is even the latest one. Our business model is to enable customer to grow fast in the market. What we see in terms of customers going into new market is access point, Wi-Fi access point, and all sort of IoT devices, starting from DTV, smart speaker, all sort of hearable devices, and even automotives to do the Wi-Fi in the car, in the cabin itself. Those are the customers. These customers are usually customers that are not familiar with connectivity, and what they need is somebody expert or specialized to provide them this total solution compliant with the standard, interoperable with every device. CEVA is the only today IP company, the only go-to guy today in the IP space if you are looking for IP. You don't have any other one that is credible and competent as us. That's the reason that we see all this response. Got it. Thanks. Thank you. This will conclude our question-and-answer session. I'd like to turn the conference back over to Richard Kingston for any closing remarks. Great. Thank you. Thank you all for joining us today and for your continued interest in CEVA. As a reminder, the prepared remarks for this conference call are filed as an exhibit to the current report on Form 8-K and accessible through the investor section of our website. With regards to upcoming conferences and events we will be attending, we have the following virtual conferences upcoming: the Susquehanna 10th Annual Technology Conference, March 9th- 11th, and the ROTH Virtual Conference from March 15 th- 17th. Further information on these events and all events that we will participate in can be found on the investor section of our website. Thank you and goodbye. The conference is now concluded. Thank you for attending today's presentation. You may now disconnect your lines at this time.