An Fan-out packaging system, comprising dedicated frame with associated movable metallic spring feature(s) for incoming known-good-die (KGD), is invented. The movable spring anchor(s) along with the boundaries of the frame locks the KGD in its designated position during EMC implementation and subsequent processes. In this system/approach, the position accuracy of KGDs during the wafer reconstitution process will be mostly dominated by the dicing accuracy. The proposed system is a very low cost approach as it does not need the expensive software/tool set and does not have a low throughput site-to-site lithography correction during exposure after metrology is carried out for every flash field. This system is particularly useful for chiplet consisting of component chips from different technologies and from substrate made of different material. The frames can be further used as part of function component for the packaged system either as electromagnetic shield, or heat dissipation/heat sink, or even RF antenna as well as other passive devices or active components.