That's pretty wild. Most atoms are 0.1-0.2nm in diameter.
For example Intel's 10nm is equivalent Samsung's 7nm. They both have a pitch of around 40nm.
They are measuring the smallest feature size - the smallest shape that is reliably replicated across the wafer. Actually pretty impressive when you think about the lithography behind it.
https://www.anandtech.com/show/13405/intel-10nm-cannon-lake-...
This is why people are moving away from planar transistors to "FinFets" and eventually having an "all around gate"