Integrated circuit packaging system with encapsulation and method of manufacture thereof

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

• providing a base substrate;
• attaching a base integrated circuit, having a base circuit active side and a base circuit non-active side, on the base substrate, the base circuit active side facing the base substrate;
• forming a base encapsulation, having a base encapsulation top side, on the base substrate and around the base integrated circuit, the base circuit non-active side exposed from and coplanar with the base encapsulation top side;
• forming a base conductive via, having a base via head, through the base encapsulation and attached to the base substrate adjacent to the base integrated circuit, the base via head exposed from and coplanar with the base encapsulation top side;
• mounting an interposer structure over the base encapsulation with the interposer structure connected to the base via head;
• and
• forming an upper encapsulation on the base encapsulation top side, with the interface between the base encapsulation and upper encapsulation along a single horizontal plane, and partially surrounding the interposer structure with a side of the interposer structure facing away from the base encapsulation exposed.

An integrated circuit packaging system comprising:

• a base substrate;
• a base integrated circuit attached on the base substrate;
• a base encapsulation, having a base encapsulation top side, on the base substrate and around the base integrated circuit, a base conductive via, having a base via head, through the base encapsulation and attached to the base substrate adjacent to the base integrated circuit, the base via head exposed from and coplanar with the base encapsulation top side;
• an interposer structure over the base encapsulation and connected to the base via head;
• and
• an upper encapsulation on the base encapsulation top side and partially surrounding the interposer structure with the side of the interposer structure facing away from the base encapsulation exposed.