Method of manufacture of integrated circuit packaging system with stacked integrated circuit

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

forming a base lead having an outer protrusion and an inner protrusion with a recess in between;

forming a stack lead having an elongated portion;

mounting a flip-chip coupled to and over the inner protrusion or under the elongated portion;

mounting the stack lead over the base lead and the flip-chip;

connecting a stack integrated circuit and the stack lead with the stack integrated circuit over the flip-chip and

encapsulating at least a portion of both the flip-chip and the stack integrated circuit with the base lead and the stack lead exposed.

2. The method as claimed in claim 1 wherein mounting the stack lead over the base lead and the flip-chip includes:

connecting the stack lead and the outer protrusion; and

mounting the elongated portion over a base non-active side of the flip-chip.

3. The method as claimed in claim 1 wherein connecting the stack integrated circuit and the stack lead includes connecting the stack integrated circuit and the elongated portion.

4. The method as claimed in claim 1 wherein mounting the flip-chip over the inner protrusion includes connecting the flip-chip and the inner protrusion with the flip-chip facing the inner protrusion.

5. The method as claimed in claim 1 wherein connecting the stack integrated circuit and the stack lead with the stack integrated circuit over the flip-chip includes connecting the stack integrated circuit and the flip-chip.

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

forming a base lead having an outer protrusion and an inner protrusion with a recess in between;

forming a stack lead having an overhang portion and an elongated portion;

mounting a flip-chip over the inner protrusion or under the elongated portion with the flip-chip coupled to and facing the inner protrusion;

mounting the stack lead over the outer protrusion and a base non-active side of the flip-chip;

connecting a stack integrated circuit and the elongated portion with the stack integrated circuit over the flip-chip and

encapsulating at least a portion of both the flip-chip and the stack integrated circuit with the base lead and the overhang portion exposed.

7. The method as claimed in claim 6 wherein encapsulating at least the portion of both the flip-chip and the stack integrated circuit includes:

forming an encapsulation having a recess exposing the flip-chip, the stack integrated circuit, or a combination thereof; and

further comprising:

mounting an external component in the recess.

8. The method as claimed in claim 6 further comprising stacking a further base lead over the stack lead, the further base lead identical to the base lead.

9. The method as claimed in claim 6 further comprising attaching a lead interconnect between the base lead and the stack lead.