A semiconductor wafer contains a plurality of semiconductor die each having a peripheral area around the die. A recessed region with angled or vertical sidewall is formed in the peripheral area. A conductive layer is formed in the recessed region. A first stud bump is formed over a contact pad of the semiconductor die. A second stud bump is formed over the first conductive layer within the recessed region. A bond wire is formed between the first and second stud bumps. A third stud bump is formed over the bond wire and first stud bump. A dicing channel partially formed through the peripheral area. The semiconductor wafer undergoes backgrinding to the dicing channel to singulate the semiconductor wafer and separate the semiconductor die. The semiconductor die can be disposed in a semiconductor package with other components and electrically interconnected through the bond wire and stud bumps.