Integrated circuit packaging system with island terminals and embedded paddle and method of manufacture thereof

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

providing a leadframe having an upper structure, upper protrusions, and a base side facing away from the upper structure and the upper protrusions;

forming tie bars in the leadframe with an opening surrounding the upper structure, the tie bars connected to the upper structure and exposed on the base side;

connecting an integrated circuit to the upper protrusions;

applying an encapsulant over the integrated circuit, over the upper structure, and in the opening with the base side exposed;

removing the tie bars exposing a first surface and a second surface of the encapsulant below the first surface, and forming a die paddle from the upper structure and exposed from the second surface; and

removing the leadframe from the base side forming island terminals from the upper protrusions exposed from the second surface and isolated from the die paddle.

2. The method as claimed in claim 1 wherein forming the opening includes etching an undercut surface of the opening.

3. The method as claimed in claim 1 further comprising forming a base patterned layer on the base side.

4. The method as claimed in claim 1 wherein etching the portions of the base side includes forming the island terminals having a standoff height.

5. The method as claimed in claim 1 wherein applying the encapsulant includes covering a portion of an undercut surface of the opening with the encapsulant.

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

providing a leadframe with an upper structure, upper protrusions, and a lowered surface with a base side, the upper structure and the upper protrusions integral with and above a side of the lowered surface opposite and facing away from the base side;

forming an opening with tie bars in the leadframe, the opening surrounding the upper structure, the tie bars connected to the upper structure and the leadframe, a side of the tie bars exposed on the base side;

connecting an integrated circuit to the side opposite the base side;

applying an encapsulant over the integrated circuit device, over the lowered surface, and in the opening, the base side exposed from the encapsulant;

etching the tie bars to form a first surface of the encapsulant, a second surface of the encapsulant below the first surface, and a die paddle covered by the encapsulant with a portion of the die paddle exposed from the second surface below the first surface; and

etching portions of the base side to form island terminals surrounded by the encapsulant, the island terminals exposed from the second surface, the island terminals isolated from and surround the die paddle.

7. The method as claimed in claim 6 wherein forming the opening includes etching an undercut surface in portions of the opening.

8. The method as claimed in claim 6 wherein providing the leadframe includes attaching a portion of an outlined patterned layer on the upper structure.

9. The method as claimed in claim 6 wherein etching the portions of the base side includes forming the island terminals having a standoff height less than an insertion depth of the island terminals.

10. The method as claimed in claim 6 wherein applying the encapsulant includes covering a portion of an undercut surface of the opening with the encapsulant.