ELECTRONICS group Samsung said yesterday an "explosive increase" in sales of memory chips for mobile phones and digital cameras had contributed to a 40 per cent growth in the division.

The South Korean group, which has a manufacturing plant in Wynyard, Teesside, said revenues in its flash memory chip division grew to £1.3bn.

That helped its net income in the third quarter rise to £955m.

Samsung said the strong performance came despite falls in the US dollar, soaring oil prices and faltering domestic consumption.

The company, which makes products including computer monitors, fax machines and mobile phones, entered the UK market in 1984.

The UK business has five product divisions covering consumer electronics, telecoms, fax machines and printers, computer peripheral products and notebook personal computers.

Samsung said the revenue growth in its flash memory chip division was unprecedented.

"Samsung is well on its way to realising its goal of becoming the number one flash memory maker by 2004," the group said.