** Hong Kong shares of Hua Hong Semiconductor 1347.HK surge 6.3% to HK$93.5, set for biggest one-day pct gain since January 28
** Stock second biggest pct gainer on Hang Seng TECH Index .HSTECH, which rises 2.2%
** Shanghai-listed stock 688347.SS climbs 3% to 122.69 yuan
** China's second-largest chipmaker Hua Hong Group develops advanced manufacturing tech to produce AI chips, four people familiar with the matter said
** Group's contract chipmaking business, Huali Microelectronics, is readying a 7-nanometre chipmaking process at its Shanghai plant, the people said
** Hua Hong Group, Huali, its sister company Hua Hong Semiconductor did not respond to requests for comment
** YTD, HK stock up 24.7%, Shanghai-listed shares up 12.8%
(Reporting by Donny Kwok)
((donny.kwok@thomsonreuters.com))
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