A semiconductor device has a modular interconnect unit or interconnect structure disposed in a peripheral region of the semiconductor die. An encapsulant is deposited over the semiconductor die and interconnect structure. A first insulating layer is formed over the semiconductor die and interconnect structure. A plurality of openings is formed in the first insulating layer over the interconnect structure. The openings have a pitch of 40 micrometers. The openings include a circular shape, ring shape, cross shape, or lattice shape. A conductive layer is deposited over the first insulating layer. The conductive layer includes a planar surface. A second insulating layer is formed over the conductive layer. A portion of the encapsulant is removed to expose the semiconductor die and the interconnect structure. The modular interconnect unit includes a vertical interconnect structure. The modular interconnect unit forms part of an interlocking pattern around the semiconductor die.