A semiconductor device includes a method of manufacturing a semiconductor device. The method includes forming an interconnect structure. In some embodiments, the forming of the interconnect structure includes forming a first patterned layer over a substrate, attaching a die attach film (DAF) to a permalloy device and transporting the permalloy device to the first patterned layer through a pick and place operation, forming a second patterned layer in the same tier as the permalloy device, and bonding a semiconductor die to the interconnect structure. In some embodiments, the second patterned layer is aligned with the first patterned layer, forming a third patterned layer over the second patterned layer and the permalloy device. In some embodiments, the first patterned layer, the second patterned layer and the third patterned layer collectively form a coil winding around the permalloy device.