A semiconductor device may include a multi-layer interconnect board having in stacked relation a lower conductive layer, a dielectric layer, and an upper conductive layer. The dielectric layer may have a recess formed with a bottom and sloping sidewall extending upwardly from the bottom. The upper conductive layer may include upper conductive traces extending across the sloping sidewall, and the lower conductive layer may include lower conductive traces. The semiconductor device may include vias extending between the lower and upper conductive layers, an IC carried by the multi-layer interconnect board in the recess, bond wires coupling upper conductive traces to the IC, and encapsulation material adjacent the IC and adjacent portions of the multi-layer interconnect board.