A semiconductor device has a substrate containing a conductive layer. An interconnect structure is formed over the substrate and electrically connected to the conductive layer. A semiconductor component is mounted to the substrate. An encapsulant is deposited over the semiconductor component and interconnect structure. A channel is formed in the encapsulant to expose the interconnect structure. Solder paste is deposited in the channel prior to forming the shielding layer. A shielding layer is formed over the encapsulant and semiconductor component. The shielding layer can be conformally applied over the encapsulant and semiconductor die and into the channel. The shielding layer extends into the channel and electrically connects to the interconnect structure. A docking pin is formed on the shielding layer, which extends into the channel and electrically connects to the interconnect structure. A chamfer area is formed around a perimeter of the shielding layer.