A 2-way Hi-Fi speaker consists of two drivers: a tweeter for high frequencies and a woofer for mid to low frequencies. In contrast, a 3-way Hi-Fi speaker incorporates an additional driver known as a mid-range driver, dedicated to reproducing mid-range frequencies. This design division allows for better frequency specialization and often results in more accurate and detailed sound reproduction across the entire audible spectrum. However, it also increases complexity and cost compared to 2-way designs.