A semiconductor die has a peripheral region around the die. An insulating layer is formed over the semiconductor die. A portion of the insulating layer and peripheral is removed to form a recess around the semiconductor die. A conductive layer is deposited over the insulating layer and recess. The conductive layer is electrically connected to contact pads on the semiconductor die and conforms to a step into the recess. A gap is created through the conductive layer and peripheral region around the semiconductor die. An insulating material is deposited in the gap. A portion of the insulating material is removed to form a through hole via (THV). A conductive material is deposited in the THV to form a conductive THV. The conductive THV is recessed with respect to a surface of the semiconductor die. The conductive THV is electrically connected to the conductive layer.