A semiconductor device is made by providing a semiconductor die having bond pads formed on a surface of the semiconductor die, forming a UBM over the bond pads of the semiconductor die, forming a fusible layer over the UBM, providing a substrate having bond pads formed on a surface of the substrate, and forming a plurality of stud bumps containing non-fusible material over the bond pads on the substrate. Each stud bump includes a wire having a first end attached to the bond pad of the substrate and second end of uniform height. The method further includes electrically connecting the second end of the wire for each stud bump to the bond pads of the semiconductor die by reflowing the fusible layer or applying thermal compression bonding, depositing an underfill material between the semiconductor die and substrate, and depositing an encapsulant over the semiconductor die and substrate.