A semiconductor device has a carrier with a fixed size. A plurality of first semiconductor die is singulated from a first semiconductor wafer. The first semiconductor die are disposed over the carrier. The number of first semiconductor die on the carrier is independent from the size and number of first semiconductor die singulated from the first semiconductor wafer. An encapsulant is deposited over and around the first semiconductor die and carrier to form a reconstituted panel. An interconnect structure is formed over the reconstituted panel while leaving the encapsulant devoid of the interconnect structure. The reconstituted panel is singulated through the encapsulant. The first semiconductor die are removed from the carrier. A second semiconductor die with a size different from the size of the first semiconductor die is disposed over the carrier. The fixed size of the carrier is independent of a size of the second semiconductor die.