Centrillion Technology: Founded by Ex-Affymetrix Team as the World’s Third High-Density Gene Chip Maker, What Can It Bring to China?

// This article was interviewed and finally edited by Liu Dong from VCBeat, and the main part was written by Zhou Mengya from VCBeat.

VCBeat On-Site Interview with Dr. Zhou Wei (Right)

Shengjie Technology, a company with low brand recognition in China.

However, it

Founded by Chinese-American scientists;

Bearing the title of the world’s third developer and manufacturer of high-density gene chips;

Possesses the only molecular diagnostics laboratory in the United States dedicated to ocular diseases;

Gathering elites from Stanford University, the Massachusetts Institute of Technology, and the Johns Hopkins School of Medicine;

Before long, they will be moving to tap into the Chinese market.

July in Hong Kong is ever-changing: a bout of torrential rain gives way to bright sunshine. On such an afternoon, VCBeat “met” with Dr. Zhou Wei, founder and CEO of Shengjie Technology, who had just flown in from the United States, at the Mandarin Oriental Hotel in Hong Kong. We spoke with this American scientist—older in age but highly talkative—about himself and his company, Shengjie Technology.

In 2009, Zhou Wei left a renowned U.S. technology law firm to found Shengjie Technology. The company’s core business is the research, development, and manufacturing of high-density gene chips. Currently, only three companies worldwide possess this capability: Shengjie Technology, the well-known Thermo Fisher Scientific, and Illumina.

“We were fortunate to participate in the development and commercialization of the first-generation chips, and our team also configured the production line,” said Zhou Wei. The management team at Shengjie can all be considered industry veterans, with most of its key members hailing from Affymetrix (acquired by Thermo Fisher Scientific in 2016).

This experience at Affymetrix was pivotal for Zhou Wei. A graduate of Stanford University, Zhou recalls that just nine months after his arrival, the university approached him about a startup that seemed like a perfect fit and asked if he would consider exploring the opportunity. That company was Affymetrix, which was then in its early startup phase. By chance, Zhou joined the company and grew alongside it.

At the time, the CEO of Affymetrix delivered a speech titled “Synthesizing an Entire Genome in 100 Steps,” which outlined the immense potential of integrating semiconductor technology with genomics. “After hearing it, I was so inspired that I wanted to drop everything else and focus solely on genomics,” said Zhou Wei, who felt greatly energized by the presentation.

When Zhou Wei first joined Affymetrix, he entered the legal department, where he was responsible for intellectual property matters. As the only vice president in the team who spoke Chinese, he later transitioned from a legal and technology management role to become the General Manager for the China region. “The China market also needed leadership; they asked if I could oversee operations there on an interim basis, so I took on the role,” Zhou Wei remarked.

“Prior to that, I had not actually engaged in extensive marketing work; Affymetrix provided me with numerous opportunities for professional development.” Under Zhou Wei’s leadership, Affymetrix collaborated with Tsinghua University to establish the first Sino-U.S. joint development project for biochips.

After leaving Affymetrix, Zhou Wei joined Wilson Sonsini Goodrich & Rosati as a partner. This premier high-tech law firm specializes in providing services such as intellectual property, corporate legal affairs, initial public offerings, and mergers and acquisitions to technology companies like Apple and Google. The firm provided substantial support for the subsequent establishment of Shengjie Technology.

For startups, developing chips is a challenging endeavor. Initially, Shengjie Technology did not believe that chip development was essential. “Shengjie’s goal is to develop more accurate sequencing technologies, and we need a specialized sequencing chip,” analyzed Zhou Wei.

“At first, Zhou Wei considered reaching out to Onfly, hoping they would develop such a product. However, Onfly lacked the spare capacity at that time, so Shengjie had to take matters into its own hands. ‘With this opportunity in hand, we got started,’ he continued.”

Subsequently, Shengjie Technology acquired certain assets from Affymetrix’s chemical laboratory and chemical research institute, thereby saving substantial time and financial costs associated with independent investment and construction. Additionally, its team includes a former head of Affymetrix’s production line. With this, both personnel and equipment were in place.

Shengjie Technology's primary business is the production of its proprietary high-density sequencing chips for two-dimensional or three-dimensional sequencing of long-chain DNA.

Compared to PCR arrays, high-density arrays feature a significantly higher probe density, enabling the simultaneous testing of multiple molecular targets. The maximum density of conventional PCR arrays does not exceed 5,000, whereas high-density arrays can reach up to 25 million.

“PCR chips remain highly significant in the U.S. diagnostic market, but our chips can largely replace them,” said Zhou Wei. “The key difference lies in density, and the high-density chips are capable of performing detection on their own.”

The third-generation high-density chip developed by Shengjie Technology features higher density and superior probe quality compared to its two preceding generations. The first-generation product offered high density but suffered from poor probe quality. The second-generation product had insufficient density and random molecular positioning, limiting it to two-dimensional sequencing.

Zhou Wei offered an analogy: If the genome is likened to a book, second-generation sequencing involves shredding this book, scattering the resulting fragments on a surface, and capturing them with a camera. Since genomic fragments inevitably contain repetitive sequences, the book would necessarily have repeated sections. This complicates the subsequent reassembly process. Furthermore, given the substantial thickness of this “book,” errors or omissions are unavoidable during reassembly, potentially rendering the final reconstructed text unintelligible. Moreover, if such errors occur precisely within regions harboring mutations, the implications for medicine and biology could be profound.

“Our initial idea was that we shouldn’t fragment it; instead, we should read it page by page,” Zhou Wei explained to VCBeat. They aimed to develop a chip capable of stretching DNA molecules onto its surface for subsequent interpretation. This is the essence of long-read sequencing technology.

Initially, Shengjie Technology simply aimed to develop high-density chips as components for its own 2D and 3D sequencing products used in scientific research. However, after establishing the manufacturing process, the company discovered substantial demand in the conventional chip market.

“This is a promising market, so we will begin to expand our production scale.”

Oncology is the top priority in the application of genetic testing. From mutations in tumor cells to their spatial distribution, genetic testing has become a powerful tool for the diagnosis and treatment of cancer. However, this also means that the oncology-focused testing market has become a red ocean.

“Our oncology business operates entirely through collaborations, providing customized products and services to our partners.”

In addition, third-generation chips have found applications in pharmacometabolomics, agriculture, and consumer genomics. Among these, consumer genomics has witnessed the most rapid growth, a market in which Affymetrix has long been actively engaged. In 2017, Ancestry alone reached a sample size of 5 million. Domestic companies are also growing rapidly, and the market continues to heat up.

However, with such high production volumes, manufacturers must consider not only cost but also chip throughput.

“Without sufficient throughput, it is impossible to process millions of samples,” said Zhou Wei.

He believes that consumer genomics in the United States has passed its growth stage, making it less than ideal for startups to enter the market at this time.

Shengjie Technology chose to enter the field of ophthalmic diseases, a sector that had not initially attracted widespread attention.

Ophthalmic diseases are predominantly monogenic disorders, but this does not imply that their genetic sequencing is straightforward.

Zhou Wei revealed to VCBeat that among more than 400 genes associated with ophthalmology, approximately 10% are so-called “pseudogenes.” Some of these genes have an impact on disease, while others appear similar to disease-related genes but do not actually influence the disease.

Zhou Wei defined the non-impactful genes in this segment as “pseudogenes.” “It is not easy to distinguish these ‘true genes’ from ‘pseudogenes.’” Otherwise, patients might need to spend thousands of dollars on just one genetic test for ophthalmic diseases.

Currently, Shengjie Technology is conducting exploratory research on early-stage applications for ophthalmic diseases. Its most advanced initiatives include sequencing methods for retinal pigmentary disorders and a study focused on childhood vision decline. Several pharmaceutical companies already have products in clinical trials within this field, and Shengjie Technology is providing support for their clinical trials.

“Precision medicine for cancer is undoubtedly important, but many diseases traditionally considered simple also hold significant value for exploration.” For instance, ophthalmic diseases primarily affect two populations: newborns and the elderly.

“Especially for ophthalmic diseases in the elderly, many can be prevented through diet and medication, potentially delaying symptoms that would typically appear at age 50 until age 70,” said Zhou Wei. “These represent two very promising markets.”

In the high-density chip market, apart from the startup Shengjie Technology, only two giants—Illumina and Thermo Fisher—currently possess such chip manufacturing capabilities. Roche has dissolved its components division, retaining only partial ownership of certain diagnostic chips acquired from Affymetrix.

By fully acquiring Affymetrix, Thermo Fisher Scientific gained the capability to produce high-density microarrays. Coincidentally, Roche, Thermo Fisher Scientific, and Genetron Health all share deep historical ties with Affymetrix.

During Thermo Fisher’s early acquisition of Affymetrix, Zhou Wei and his partners also raised funds in an attempt to acquire Affymetrix, but ultimately did not succeed.

“Many of our former colleagues at Angfei hope that Angfei can continue to develop independently. We should make an effort. Although the acquisition did not go through, Shengjie has gained recognition in the industry.”

At the time, Affymetrix’s production lines had already been in operation for 20 years. Technological obsolescence forced the company to seek refuge under a larger corporate umbrella. This served as a warning to Zhou Wei: for Shengjie Technology, research and development must never cease.

“We already have third-generation chips, but at the same time, we are also developing fourth- and fifth-generation chips.”

“Even if the third-generation product is successfully developed, our mission will still be incomplete; the genome is far too complex.”

According to Zhou Wei, Shengjie Technology has established R&D bases in Silicon Valley, Oregon, and Hangzhou. Silicon Valley is currently the most important research hub and houses the company’s earliest production line; the clinical laboratory in Oregon is primarily responsible for clinical translational research in genomics; while the Hangzhou base focuses more on applied research and also operates a production line.

“Operations in the U.S. are primarily focused on research and development. The team consists mostly of former colleagues from Affymetrix, along with some new hires from Stanford University,” he told VCBeat. “We are located right next to Stanford University.”

When asked about its R&D investment, Zhou Wei candidly acknowledged that substantial funding is required. Since its establishment in 2009, the company has secured over $100 million in financing. Its investors include venture capital firms from the United States and China, such as semiconductor-focused funds like Wuyue Peak Capital, as well as corporate venture arms like UK-based ARM. “We are a quintessential Silicon Valley-style company,” he stated.

Not only that, but Shengjie Technology did not opt for the CMO model for production like most startups. In addition to its production lines in Silicon Valley and Hangzhou, it has also established its own manufacturing base in the Hsinchu Science Park in Taiwan.

Shengjie Technology established a subsidiary in Hangzhou in 2015, a move largely driven by the significant opportunities present in the Chinese market. “The pace of development in China’s market has exceeded my expectations. Hangzhou’s scientific research infrastructure is highly conducive to the company’s next stage of growth,” said Zhou Wei. Shengjie Technology is currently the only biochip company in Asia that possesses comprehensive technological capabilities and masters core semiconductor manufacturing processes and design.

Initially, Shengjie Technology’s primary modes of collaboration were providing complete products and offering custom chip services to enterprises. However, its partnership with WeDoctor in May 2018 provided the company with greater inspiration.

The collaboration between the two parties encompasses several aspects. First, regarding the establishment of clinical laboratories, Shengjie Technology is responsible for introducing U.S. technology into China and jointly developing dedicated chips with WeDoctor. Additionally, they will assist WeDoctor in the design of several mobile devices.

“WeDoctor currently has a large user base, and we are very interested in how they deliver technology to all patients as quickly as possible.”

Zhou Wei finally revealed to VCBeat that the production scale of Shengjie Technology’s Hangzhou production line will exceed that of its Taiwan production line, with currently planned output value reaching the billion-dollar level. Meanwhile, given Hong Kong’s favorable policies, an IPO in Hong Kong remains a possibility in the future.

Following the interview, Zhou Wei’s Shengjie Technology once again signed significant cooperation agreements with WeDoctor and Lihe Medical. Coinciding with the 20th anniversary of Hong Kong’s return to China, all eyes are on the mainland, with high hopes that Zhou Wei and his Shengjie Technology will bring new opportunities to China’s genomics industry.