Integrated circuit packaging system with package-on-package and method of manufacture thereof

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

forming a plurality of peripheral leads;

forming an interior conductive layer directly on at least one of the plurality of peripheral leads;

forming a vertical connector directly on the interior conductive layer, the vertical connector having a connector top side;

connecting an integrated circuit to the interior conductive layer;

forming an encapsulation over the integrated circuit, the encapsulation having an encapsulation top side coplanar with the connector top side;

forming a package paddle surrounded by the plurality of peripheral leads; and

mounting the integrated circuit over the package paddle.

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

forming a peripheral lead;

forming an interior conductive layer directly on the peripheral lead;

forming a vertical connector directly on the interior conductive layer, the vertical connector having a connector top side;

connecting an integrated circuit to the interior conductive layer;

forming an encapsulation over the integrated circuit, the encapsulation having an encapsulation top side coplanar with the connector top side; and

forming an insulation layer directly on the peripheral lead.

3. The method as claimed in claim 2 further comprising:

forming a central lead having a central lead top side below a peripheral top side of the peripheral lead; and

forming a recess conductive layer directly on the central lead top side.

4. The method as claimed in claim 2 further comprising forming a central lead having a central lead top side coplanar with a peripheral top side of the peripheral lead.

5. The method as claimed in claim 2 further comprising:

forming a central lead surrounded by a plurality of the peripheral lead; and

attaching an attach layer to the central lead.

6. The method as claimed in claim 2 wherein connecting the integrated circuit includes connecting a flip chip to the interior conductive layer.

7. An integrated circuit packaging system comprising:

a plurality of peripheral leads;

an interior conductive layer directly on at least one of the plurality of peripheral leads;

a vertical connector directly on the interior conductive layer, the vertical connector having a connector top side;

an integrated circuit connected to the interior conductive layer;

an encapsulation over the integrated circuit, the encapsulation having an encapsulation top side coplanar with the connector top side;

a package paddle surrounded by the plurality of peripheral leads; and

wherein:

the integrated circuit is over the package paddle.

8. The system as claimed in claim 7 further comprising an insulation layer directly on at least one of the plurality of peripheral leads.