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The W term refers to the gate width of the transistor. As you can see, increasing the gate width will increase the drain current of the transistor. The benefits of a higher drain current should be obvious.
The transconductance of the n-type MOSFET in saturation is given by:
Once again, there is a linear relationship between transconductance and transistor gate width. A higher transconductance means that you can build an amplifier with a higher gain.
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