A semiconductor device has a first substrate and a semiconductor die disposed over the first substrate. A second substrate has a multi-layered conductive post. The conductive post has a first conductive layer and a second conductive layer formed over the first conductive layer. The first conductive layer is wider than the second conductive layer. A portion of the conductive post can be embedded within the second substrate. The second substrate is disposed over the first substrate adjacent to the semiconductor die. An encapsulant is deposited around the second substrate and semiconductor die. An opening is formed in the second substrate aligned with the conductive post. An interconnect structure is formed in the opening to contact the conductive post. A discrete electrical component is disposed over a surface of the first substrate opposite the semiconductor die. A shielding layer is formed over the discrete electrical component.