A semiconductor device includes a semiconductor die having an active surface, an opposite surface, a vertical sidewall extending between the active surface and the opposite surface, and input/output (I/O) connections disposed on the active surface. A redistribution layer (RDL) is disposed on the active surface of the semiconductor die. A plurality of first connecting elements is disposed on the RDL. A molding compound encapsulates the opposite surface and the vertical sidewall of the semiconductor die. The molding compound also covers the RDL and surrounds the plurality of first connecting elements. An interconnect substrate is mounted on the plurality of first connecting elements and on the molding compound.