No, it's describing the size of the machines that read DNA.
to take up + a location, means to occupy or fill up a space entirely. Examples:
"That bookstore takes up a whole city block."
"The boxes took up the entire backseat of my car."
"My couch is huge, it takes up half my living room."
So if the machines take up entire lab benches, they're essentially as big as one of the benches.
to generate a genome: To produce a genome, to duplicate or reproduce a genome. It's talking about the amount of processing involved for the machines to duplicate the DNA that makes up (something's) complete set of chromosomes.
(not a teacher, just a language lover)
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