The word 因此 is formed by combining two independent characters, each contributing its core conceptual meaning to create a new, logical unit. The first character, 因, carries the fundamental idea of "cause", "reason", or "basis". It is joined with 此, which means "this" or "here". Their combination is therefore literal and spatial: 因此 directly means "because of this" or "due to this [reason mentioned before]", where 此 points anaphorically to the preceding cause, and 因 establishes the causal relationship, fusing into the consequential meaning of "therefore" or "thus".