A semiconductor device is made with a conductive via formed through a top-side of the substrate. The conductive via extends vertically through less than a thickness of the substrate. An integrated passive device (IPD) is formed over the substrate. A plurality of first conductive pillars is formed over the first IPD. A first semiconductor die is mounted over the substrate. An encapsulant is formed around the first conductive pillars and first semiconductor die. A second IPD is formed over the encapsulant. An interconnect structure is formed over the second IPD. The interconnect structure operates as a heat sink. A portion of a back-side of the substrate is removed to expose the first conductive via. A second semiconductor die is mounted to the back-side of the substrate. The second semiconductor die is electrically connected to the first IPD and first semiconductor die through the conductive via.