What was the gross margin for the company in the fourth quarter of 2020 
e quarterly fluctuations in gross margin. Despite these short-term fluctuations, our long-term trajectory toward the 47% gross margins of our target model remains intact. And as you can see from our outlook, we expect a sequential increase in gross margin for the current quarter.
Turning to market level details, demand for foundry and logic probe cards was extremely strong in the fourth quarter. The strength is the result of new design releases in the fabless foundry ecosystem that ramped aggressively in both high performance compute and mobile applications, with continued strong growth associated with 5G handset launches. In the first quarter, these specific ramps are mostly behind us and we do expect a slight sequential decrease in foundry and logic probe cards.
On a longer-term basis, driven by 5G and advanced packaging, this market is a major growth opportunity as customers utilize FormFactor's differentiated market-leading products to meet their highly complex test requirements for millimeter-wave RF front ends, next-generation application processors and high power compute processors. In DRAM, we delivered the highest quarterly revenue of 2020 as customers released and ramped new designs in a combination of technology node migrations, 12 gigabit and 16 gigabit product ramps and the beginning of the HBM2 to HBM3 transition.
As a reminder, probe cards are a consumable with a specific each chip design, and so demand is generated not just by node migrations but also the release of new chip designs, such as 16 gigabit LPDDR 5. With this strong new design activity in place across our customer base, we expect first quarter and potentially first half DRAM probe card demand to continue at levels comparable to the fourth quarter.
The HBM3 transition is especially exciting for FormFactor that's yet another example of industry adoption of advanced packaging with customers stacking up to 16 individual silicon die to meet memory bandwidth and power requirements in high-performance compute applications. In these stack die architectures, the value of testing increases as more die are added to the stack to avoid incorporating bad component die into an otherwise good stack. As a result, as advanced packaging schemes like HBM3 are adopted, we are seeing a substantial growth in test intensity.
On top of that, the technologies required to test these devices are extremely complex and sophisticated. The dimensions of an individual MEMS fabricated probe are comparable to a human hair, they carried power at over an amp of current and signals at tens of gigahertz while lasting millions of contact cycles. Moreover, a typical probe card contains tens of thousands, if not hundreds of thousands, of precisely assembled MEMS probes. This combination of increased test intensity, which expands the number of probe cards required for wafer out and test complexity which widens FormFactor's competitive advantage is characteristic of all types of advanced packaging.
As the industry's focus moves to post-fab integration to offset the slowing of front-end Moore's Law wafer test and probe cards are taking a prominent role in enabling a variety of advanced packaging schemes like HBM stacking of DRAM die and heterogeneous integration of chiplets, and are at least partially responsible for the double-digit growth we delivered in both 2019 and 2020. These secular growth trends support our investments in capacity with increased capital expenditures, including our 2020 purchase of a new 90,000 square foot factory in Livermore, which is scheduled to begin revenue shipments in the second half of this year.
Turning to M&A, following two acquisitions in the second half of last year, our team is focused on integrating our additions. The Advantest's probe card assets we acquired in July are now fully integrated into our probe card operations, and we have launched an internal program to incorporate several technology subcomponents into FormFactor's probe card roadmap. We are also making progress introducing the acquired mainstream NAND flash probe card products into the
e quarterly fluctuations in gross margin. Despite these short-term fluctuations, our long-term trajectory toward the 47% gross margins of our target model remains intact. And as you can see from our outlook, we expect a sequential increase in gross margin for the current quarter.
Turning to market level details, demand for foundry and logic probe cards was extremely strong in the fourth quarter. The strength is the result of new design releases in the fabless foundry ecosystem that ramped aggressively in both high performance compute and mobile applications, with continued strong growth associated with 5G handset launches. In the first quarter, these specific ramps are mostly behind us and we do expect a slight sequential decrease in foundry and logic probe cards.
On a longer-term basis, driven by 5G and advanced packaging, this market is a major growth opportunity as customers utilize FormFactor's differentiated market-leading products to meet their highly complex test requirements for millimeter-wave RF front ends, next-generation application processors and high power compute processors. In DRAM, we delivered the highest quarterly revenue of 2020 as customers released and ramped new designs in a combination of technology node migrations, 12 gigabit and 16 gigabit product ramps and the beginning of the HBM2 to HBM3 transition.
As a reminder, probe cards are a consumable with a specific each chip design, and so demand is generated not just by node migrations but also the release of new chip designs, such as 16 gigabit LPDDR 5. With this strong new design activity in place across our customer base, we expect first quarter and potentially first half DRAM probe card demand to continue at levels comparable to the fourth quarter.
The HBM3 transition is especially exciting for FormFactor that's yet another example of industry adoption of advanced packaging with customers stacking up to 16 individual silicon die to meet memory bandwidth and power requirements in high-performance compute applications. In these stack die architectures, the value of testing increases as more die are added to the stack to avoid incorporating bad component die into an otherwise good stack. As a result, as advanced packaging schemes like HBM3 are adopted, we are seeing a substantial growth in test intensity.
 On top of that, the technologies required to test these devices are extremely complex and sophisticated. The dimensions of an individual MEMS fabricated probe are comparable to a human hair, they carried power at over an amp of current and signals at tens of gigahertz while lasting millions of contact cycles. Moreover, a typical probe card contains tens of thousands, if not hundreds of thousands, of precisely assembled MEMS probes. This combination of increased test intensity, which expands the number of probe cards required for wafer out and test complexity which widens FormFactor's competitive advantage is characteristic of all types of advanced packaging.
As the industry's focus moves to post-fab integration to offset the slowing of front-end Moore's Law wafer test and probe cards are taking a prominent role in enabling a variety of advanced packaging schemes like HBM stacking of DRAM die and heterogeneous integration of chiplets, and are at least partially responsible for the double-digit growth we delivered in both 2019 and 2020. These secular growth trends support our investments in capacity with increased capital expenditures, including our 2020 purchase of a new 90,000 square foot factory in Livermore, which is scheduled to begin revenue shipments in the second half of this year.
Turning to M&A, following two acquisitions in the second half of last year, our team is focused on integrating our additions. The Advantest's probe card assets we acquired in July are now fully integrated into our probe card operations, and we have launched an internal program to incorporate several technology subcomponents into FormFactor's probe card roadmap. We are also making progress introducing the acquired mainstream NAND flash probe card products into the