What is the forecasted revenue for CEVA for 2021 
other growth year for CEVA as the momentum in our business continues. We are forecasting total revenue to be just over $106 million -- $106 million for 2021 with growth in both royalties and licensing. Specifically, in regard to royalty revenue forecast, we are taking a wait and see approach, as the semiconductor industry has experienced extended lead times 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 earlier elaborated earlier. We are targeting another record year for licensing, which will set the stage for additional new streams of royalties in the years to come. On the royalty front, we are expecting a decline in royalties from a leading smartphone OEM, who has switched to another baseband supplier for its recently launched 5G smartphone lineup.
With that said, we do maintain our presence in its 4G smartphones that are still expected to ship volume 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 and IoT product category, we expect to continue to outgrow the markets 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 that relates to the devaluation of the US dollar compared to other currencies that we use mainly the shekels and euros. On the cost of goods, we expect higher non-GAAP expenses of approximately $0.5 million due to more sensor fusion chip sales and other project expenses.
On opex, with our 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 investments in R&D. Overall, non-GAAP opex increase will be approximately $6 million, half of it, $3 million is attributed to the FX, as I stated. Equity-based compensation is forecast 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 a non-GAAP basis.
Interest income is forecasted to be lower than 2020 due to 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, Bluetooth and Wi-Fi. Approximately 22% of pre-tax income on a non-GAAP basis, this is compares to 2020 level 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% on a GAAP and 91% on a 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 to $24.2 million. Of our anticipated total operating expenses for the first quarter, $3.1 million is expected to be attributable to equity-based compensation expenses and $0.6 million to amortizations.
Our non-GAAP opex for the first quarter is forecasted to be in the range of $19.6 million to $20.6 million. Net interest income that is expected to be about $600,000. Taxes for the first quarter a bit higher, they're staying $0.5 million in both GAAP and non-GAAP basis. And share count for the first quarter is expected to be around 23.3 million shares.
Nicole, you could now open the Q&A session, please.
Questions and Answers:
Operator
We will now begin the question-and-answer session. [Operator Instructions] Our first question today will come from Matt Ramsay with Cowen. Please go ahead.
Matt Ramsay -- Cowen -- Analyst

other growth year for CEVA as the momentum in our business continues. We are forecasting total revenue to be just over $106 million -- $106 million for 2021 with growth in both royalties and licensing. Specifically, in regard to royalty revenue forecast, we are taking a wait and see approach, as the semiconductor industry has experienced extended lead times 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 earlier elaborated earlier. We are targeting another record year for licensing, which will set the stage for additional new streams of royalties in the years to come. On the royalty front, we are expecting a decline in royalties from a leading smartphone OEM, who has switched to another baseband supplier for its recently launched 5G smartphone lineup.
With that said, we do maintain our presence in its 4G smartphones that are still expected to ship volume 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 and IoT product category, we expect to continue to outgrow the markets 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 that relates to the devaluation of the US dollar compared to other currencies that we use mainly the shekels and euros. On the cost of goods, we expect higher non-GAAP expenses of approximately $0.5 million due to more sensor fusion chip sales and other project expenses.
 On opex, with our 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 investments in R&D. Overall, non-GAAP opex increase will be approximately $6 million, half of it, $3 million is attributed to the FX, as I stated. Equity-based compensation is forecast 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 a non-GAAP basis.
Interest income is forecasted to be lower than 2020 due to 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, Bluetooth and Wi-Fi. Approximately 22% of pre-tax income on a non-GAAP basis, this is compares to 2020 level 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% on a GAAP and 91% on a 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 to $24.2 million. Of our anticipated total operating expenses for the first quarter, $3.1 million is expected to be attributable to equity-based compensation expenses and $0.6 million to amortizations.
Our non-GAAP opex for the first quarter is forecasted to be in the range of $19.6 million to $20.6 million. Net interest income that is expected to be about $600,000. Taxes for the first quarter a bit higher, they're staying $0.5 million in both GAAP and non-GAAP basis. And share count for the first quarter is expected to be around 23.3 million shares.
Nicole, you could now open the Q&A session, please.
Questions and Answers:
Operator
 We will now begin the question-and-answer session. [Operator Instructions] Our first question today will come from Matt Ramsay with Cowen. Please go ahead.
Matt Ramsay -- Cowen -- Analyst
