A fan-out interposer converts a microBGA package to a larger pitch that is suitable for larger, thicker PCBs. For example, a 0.5mm pitch device can be converted to a 1mm pitch ball array, eliminating the additional costs associated with microvias and underfilling on the PCB. This allows the use of the latest, most cost-effective ICs without increasing the cost of the system PCB.
For example, the best IC for your new system might be primarily used for cell phones and only available in a 0.5mm pitch uBGA package. This single component would force your motherboard into microvia technology and would require underfill, which is a non-standard manufacturing process. With a fan-out interposer, a 0.5mm pitch Micro BGA can be converted to a much more usable 1mm pitch, which falls in line with standard design rules providing a more cost-effective solution.