What is the estimated growth in 5G-enabled handsets in 2021 
es and the massive amounts of data they send every second to the cloud is driving demand for the most advanced memory and logic devices to support new applications and artificial intelligence and high performance compute. The transition to 5G, which is only just beginning, will drive an estimated 250% growth in 5G-enabled handsets in 2021, further increasing demand for advanced logic memory in the numerous specialty devices that goes into those handsets.
Advanced packaging is playing a more pivotal role in the road maps of many device manufacturers as they drive smaller geometries and heterogeneous packaging to deliver products with higher performance and lower power consumption. We expect to play a prominent role in the transition to heterogeneous packaging by leveraging our JetStep lithography, Firefly inspection and Discover software suite to overcome challenges from shrinking geometries across larger packages. We expect to start shipping these new solutions to customers beginning in the second quarter.
Another important secular trend is the transition to electric vehicles, driven by consumers and supported by various government initiatives. The EU has announced a plan to ban new fossil fuel car sales by 2030. California, Japan and others have announced their plans to ban the sale of new combustion engine vehicles by 2035. This transition to electric vehicles is accelerating demand for power control, smart vehicle sensors and other systems to optimize drivetrains, battery life and charging. Many of these critical devices are produced using compound semiconductor processes such as gallium nitride and silicon carbide. Inspectrology is a leading supplier of overlay metrology specific to these unique processes.
By augmenting their overlay metrology with our discover run to run software, defect inspection and process analysis software, will provide a unique integrated solution to help customers meet aggressive ramp in yield targets. In addition to growth in the secular markets we serve, we are strengthening our customer relationships. For example, we recently completed two record level volume purchase agreements, each representing over $100 million in target revenue for 2021. These agreements cover the breadth of our product lines across both front- and back-end applications. Though not a guarantee of revenue, the agreements are a good indication of business health and are growing importance to these customers. Specific to the first quarter, the midpoint of the revenue guidance that Steve mentioned is up 4.4%.
We project revenue from advanced nodes increasing by double digits, led by logic customers investing in both 5-nanometer and 3-nanometer process technology. We also see modest growth in DRAM and a slight contraction in NAND after an incredibly strong fourth quarter. Packaging and specialty will remain essentially flat with the fourth quarter with strong investments in packaging technology by leading IDMs, offsetting the decline we typically see due to effects of seasonality. Considering the strength of our current backlog and the growing visibility we have into the second quarter, we expect the first half of 2021 will be over 20% stronger than the first half of 2020.
It's an exciting time for Onto Innovation, and we appreciate the continued support from our customers as we look at the many opportunities in front of us. I also want to acknowledge and thank our dedicated team at Onto Innovation. Thanks to their incredible teamwork and tireless commitment to our customers' success, we are positioned to have a more critical role in driving the future of our industry. With that, we'll open the call for your questions. Sarah?
Questions and Answers:
Operator
[Operator Instructions] And we'll go ahead and take our first question now from Craig Ellis with B. Riley.
Craig Ellis -- B. Riley -- Analyst
Question, and Mike and Steve, congratulations on the products and expansion successes and entering into the target financial model range. Mike, I wanted to start just by following up on a couple of the points you made. The first o
es and the massive amounts of data they send every second to the cloud is driving demand for the most advanced memory and logic devices to support new applications and artificial intelligence and high performance compute. The transition to 5G, which is only just beginning, will drive an estimated 250% growth in 5G-enabled handsets in 2021, further increasing demand for advanced logic memory in the numerous specialty devices that goes into those handsets.
Advanced packaging is playing a more pivotal role in the road maps of many device manufacturers as they drive smaller geometries and heterogeneous packaging to deliver products with higher performance and lower power consumption. We expect to play a prominent role in the transition to heterogeneous packaging by leveraging our JetStep lithography, Firefly inspection and Discover software suite to overcome challenges from shrinking geometries across larger packages. We expect to start shipping these new solutions to customers beginning in the second quarter.
Another important secular trend is the transition to electric vehicles, driven by consumers and supported by various government initiatives. The EU has announced a plan to ban new fossil fuel car sales by 2030. California, Japan and others have announced their plans to ban the sale of new combustion engine vehicles by 2035. This transition to electric vehicles is accelerating demand for power control, smart vehicle sensors and other systems to optimize drivetrains, battery life and charging. Many of these critical devices are produced using compound semiconductor processes such as gallium nitride and silicon carbide. Inspectrology is a leading supplier of overlay metrology specific to these unique processes.
By augmenting their overlay metrology with our discover run to run software, defect inspection and process analysis software, will provide a unique integrated solution to help customers meet aggressive ramp in yield targets. In addition to growth in the secular markets we serve, we are strengthening our customer relationships. For example, we recently completed two record level volume purchase agreements, each representing over $100 million in target revenue for 2021. These agreements cover the breadth of our product lines across both front- and back-end applications. Though not a guarantee of revenue, the agreements are a good indication of business health and are growing importance to these customers. Specific to the first quarter, the midpoint of the revenue guidance that Steve mentioned is up 4.4%.
 We project revenue from advanced nodes increasing by double digits, led by logic customers investing in both 5-nanometer and 3-nanometer process technology. We also see modest growth in DRAM and a slight contraction in NAND after an incredibly strong fourth quarter. Packaging and specialty will remain essentially flat with the fourth quarter with strong investments in packaging technology by leading IDMs, offsetting the decline we typically see due to effects of seasonality. Considering the strength of our current backlog and the growing visibility we have into the second quarter, we expect the first half of 2021 will be over 20% stronger than the first half of 2020.
It's an exciting time for Onto Innovation, and we appreciate the continued support from our customers as we look at the many opportunities in front of us. I also want to acknowledge and thank our dedicated team at Onto Innovation. Thanks to their incredible teamwork and tireless commitment to our customers' success, we are positioned to have a more critical role in driving the future of our industry. With that, we'll open the call for your questions. Sarah?
Questions and Answers:
Operator
[Operator Instructions] And we'll go ahead and take our first question now from Craig Ellis with B. Riley.
Craig Ellis -- B. Riley -- Analyst
Question, and Mike and Steve, congratulations on the products and expansion successes and entering into the target financial model range. Mike, I wanted to start just by following up on a couple of the points you made. The first o