Thread count simply means the number of threads per square inch of fabric. It is made up of both vertical and horizontal threads. Manufacturers increase thread counts by simply adding additional threads, by adding only horizontal (or weft) threads or by using 2-ply yarns. They do this by twisting two thin yarns together. While an increased thread count can improve the quality of sheets, they may not necessarily have the best feel.
The most popular sheets are made with 100 percent cotton, which provides year-round comfort. Higher quality cotton sheets are made with longer, or staple fibers. The longer the fiber, the finer and stronger the yarns. The longest are found in Egyptian and Pima sheets, sometimes referred to as Supima.
Yarn size refers to how fine a yarn is. The higher the size, the finer and lighter the yarn is. This produces more soft and supple fabrics. It is typically between 40 to 100 and ,in rare cases, 120 which come at a higher cost. Higher thread counts can be achieved with finer yarns because more threads can be woven into a square inch.
Once sheet-makers weave yarns together, they produce better quality sheet fabric.They do this by singeing and mercerizing. Singeing burns off tiny fuzz that can later cause pilling in the sheets. Mercerizing is done under tension and increases the strength, luster and how well the fabric absorbs any dyes. Lesser quality sheets may not go through these finishing processes.