Insulators, conductors, and semiconductors can be classified based on their atomic structure and ability to conduct electricity. Insulators have a full outer electron shell and do not conduct electricity well. Conductors have 1-3 electrons in their outer shell and conduct electricity easily. Semiconductors have 4 electrons in their outer shell, allowing some conductivity depending on available electrons (p-type) or holes (n-type). They fall between conductors and insulators.