Technology advancements like this are going to keep on marching along no matter the price of the end good. There is massive demand for better and better silicone and that doesn't look like it's going to change pretty much ever, at least not in our lifetimes.

Also, every time you see these companies announcing new chips with smaller transistors, that means they built an entire new fab to produce these chips. The old fabs generally still stay operating if there is demand, so this does in fact increase capacity overall