Integrated circuit packaging system with shielding and method of manufacture thereof

A method of manufacture of an integrated circuit packaging system comprising:

• forming a molded package strip on a carrier, the molded package strip having system interconnects and a solder resist layer mounted over a wafer substrate, the wafer substrate coupled to the system interconnects, and the system interconnects and the solder resist layer are both facing away from the molded package strip;
• forming an interconnect encasing on the system interconnects and the solder resist layer, the interconnect encasing encases the system interconnects;
• singulating the molded package strip to form an integrated package assembly by cutting along a saw street of the molded package strip to expose vertical sides of the integrated package assembly;
• transferring the integrated package assembly to a deposition tape, the interconnect encasing positioned directly on the deposition tape;
• and
• applying a conductive conformal shield structure directly on the integrated package assembly and the interconnect encasing.

An integrated circuit packaging system comprising:

• an integrated package assembly comprising:
• a molded package strip having system interconnects and a solder resist layer mounted over a wafer substrate with the wafer substrate coupled to the system interconnects;
• and
• an interconnect encasing on the system interconnects and the solder resist layer, the interconnect encasing encases the system interconnects;
• and
• a conductive conformal shield structure directly on the integrated package assembly, the interconnect encasing, and the vertical sides of the integrated package assembly.