An integrated circuit package system includes: providing a substrate; attaching an integrated circuit over the substrate; attaching an integrated circuit subassembly system having a perforated interposer over the substrate with the perforated interposer having a slot; and forming a package encapsulation over the integrated circuit subassembly system, the perforated interposer, the integrated circuit, and the substrate with the slot filled with the package encapsulation.

 
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