A packaged power semiconductor device is provided with voltage isolation between a metal backside and terminals of the device. The packaged power semiconductor device is arranged in an encapsulant defining a hole for receiving a structure for physically coupling the device to an object. A direct-bonded copper (“DBC”) substrate is used to provide electrical isolation and improved thermal transfer from the device to a heatsink. At least one power semiconductor die is mounted to a first metal layer of the DBC substrate. The first metal layer spreads heat generated by the semiconductor die. In one embodiment, the packaged power semiconductor device conforms to a TO-247 outline and is capable of receiving a screw for physically coupling the device to a heatsink.