A system for fan out chip encapsulation processing is provided, wherein a plurality of microchips are encapsulated in molding compound, the system comprising: an atmospheric loading camber, configured to load substrates onto carriers in atmospheric environment; an entry loadlock arrangement configured to introduce the carriers into vacuum environment of the system; a degas chamber positioned downstream of the loadlock arrangement within the vacuum environment, the degas chamber comprising a heating element and a pumping arrangement to remove gases emitted from the molding compound; an etch chamber positioned downstream of the degas chamber and within the vacuum environment, the etch chamber comprising an ion beam generator and an ion neutralizer; a metal sputtering chamber positioned downstream of the etch chamber and inside the vacuum environment; and, an exit loadlock arrangement configured to remove carriers from the vacuum environment.