VolkswagenThe global shortage of semiconductor chips will continue into next year, executives in the Americas said on Tuesday.

"there is no doubt that this shortage will continue until 2022, at least until the second half of the year," said Scott Keogh, chief executive of Volkswagen US Group.

Chip shortages have led global carmakers to cut car production, but as car prices rise, profits are also boosted. Chips are used in brake sensors, power steering and entertainment systems.

Keogh added that while the problem is likely to ease in the fourth quarter of this year, the industry is still unable to meet the demand for cars.

One possible shift in the near future, he says, is that carmakers will try to reduce the number of chips needed for car and truck parts.

"historically, we have made decisions as if there was an unlimited supply of chips, so each module needs a chip, each window elevator, modulator," he said. "when we develop cars, we have to start thinking about whether we can make more modules with fewer chips. It can be done. These are the things we are paying attention to. "

As for the argument that the US government should finance the construction of more chip plants, Keogh said it would take billions of dollars and at least four years. "I don't know if calling the government is the solution to the chip shortage."

Keogh said that while chips are the current challenge, the next step is the growing demand for electric vehicles and the batteries needed to power them.