Ok it came to me what it might be while I slept. Seq stands for sequencing, as in genome sequencing.
Chip refers to it being a DNA chip.
My wild onager guess:
So I'll guess this is a gene-chip application where by the chip has tons of random genome embedded on to it (literally nucleotide embedded on silicon), all connected by the chip to a circuit. Process a sample genome---presumably involving some physical manipulation and probably lots of enzyme digests (restriction enzymes most likely), then run the sample over the chip. Thanks to the ability of nucleotide sequencs to complementary bind each other (via base-pairing of Guanine to Cytoseine bases, Adenine to Thymine bases) the sample sequences will bind to the sequences, and that will trigger the chip firing presumably with that sequence at that spot known (including it's 5'->3' directionality).
So that will generate lots of data of the sequences, including the 5'->3' directionality of the sequences, without doing the traditional chemical way of breaking off one base at a time to sequence (which is also pretty fast these days, but still expensive, though consistently getting cheaper).
The catch is like similar restriction-enzyme type sequencing, the sequences still have to overlap to build the larger map of the genome, so the processing of the sample has to cut up the sample in a multitude of ways to generate overlapping fragments.
My answer might be totally bunk though. I'm not very knowledgeable about gene-chip--as to how accurate they are, etc... just that they were showing promise a decade ago.