Integrated circuit packaging system with a stack package and method of manufacture thereof

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

• providing a stack board;
• connecting a device over the stack board;
• forming a stack encapsulant having a cavity and a pedestal over the device and having a shaped perimeter side from a pedestal surface of the pedestal to the stack board;
• forming a base package having an upper integrated circuit, a spacer, and a package substrate;
• attaching a stack adhesive to the base package and the pedestal, the cavity and the shaped perimeter side providing a space for connections to the stack board;
• connecting an internal interconnect between the upper integrated circuit and the package substrate the internal interconnect next to the spacer;
• attaching a vertical interconnect between the stack board and the base package;
• and
• forming a package encapsulant over the vertical interconnect, over the base package, over the stack board, and surrounding the stack encapsulant.

An integrated circuit packaging system comprising:

• a stack board;
• a device connected over the stack board;
• a stack encapsulant formed with a cavity and a pedestal, over the device and with a shaped perimeter side of the stack encapsulant from a pedestal surface of the pedestal to the stack board;
• a stack adhesive attached over the pedestal;
• a base package having an upper integrated circuit and a package substrate attached over the stack adhesive and with a space for connections to the stack board;
• and an internal interconnect to the upper integrated circuit and the package substrate, a portion of the internal interconnect within the cavity of the stack encapsulant.