Manufacturing Process technology. It refers to the distance between identical components on the fabricated chip (such as transistors, resistors, capacitors, diodes, etc.).
Smaller the nanometre value, more the chip density. This results in either space savings (lower size of chip) or additional speed and functionality (due to higher amount of circuitry that can be packed into the same size of chip).
Chip design and manufacture gets more and more complicated the smaller you get on the process scale. This is because material properties change on the nanoscale leading to less than desirable electrical and mechanical characteristics. That is why chips on smaller processes often run hot or are delayed since it takes time to perfect the technology.