Semiconductors are preferred over resistors in Hall effect sensors because resistors limit current flow and consume more power, which is undesirable for sensor operation. Semiconductors allow for better control and efficiency, enhancing the sensor's performance. The Hall effect relies on the movement of charge carriers, with P-type semiconductors utilizing holes and N-type using electrons, potentially enabling advanced differential analysis. This combination of charge carriers contributes to the sensor's sensitivity and accuracy. Overall, the use of semiconductors significantly improves the functionality of Hall effect sensors compared to basic resistors.