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Theia IDE – Open-Source Cloud and Desktop IDE
(theia-ide.org)
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I noticed that Arduino are using it for the 2.0 of their IDE. I guess a big part of the benefit here is providing a workbench base for different types of IDE with different goals, similarly to Eclipse.
Not a million miles away from VSC's extension model but it allows deeper customisation which is fantastic for embedded hardware and software houses that need that deep integration without dealing with vendor lock in.