Everything about this is crazy complex, and the state of the art in any given year is also secret to TSMC and other tiny-feature-size fabs.
But in addition to gradually upping the narrow-bandwidth/phase-coherent illumination frequency every year (which has many problems but continues to see continual progress), they've also long been using techniques to work around the diffraction limit/resolution barrier [1], such as subwavelength metamaterial "hyperlenses" / "superlenses" (previously widely thought to be impossible even in theory) [2][3] and "assist features" and other non-traditional masking elements to pre-compensate for imaging distortions [4]. Plus they fiddle a lot with the chip process to tune it in weird ways to assist with or compensate for the previous issues.
[1] https://en.wikipedia.org/wiki/Diffraction-limited_system
[2] https://en.wikipedia.org/wiki/Superlens#Theory
[3] "Subwavelength-Grating Metamaterial Structures for Silicon Photonic Devices" https://ieeexplore.ieee.org/document/8424820
[4] https://en.wikipedia.org/wiki/Extreme_ultraviolet_lithograph...
https://www.asml.com/-/media/asml/images/technology/43679-in...
[1] https://www.youtube.com/watch?v=en7hhFJBrAI around 7:30