A semiconductor device has a substrate. A semiconductor die including a photosensitive circuit is disposed over the substrate. A shield is disposed over the substrate and semiconductor die with a first opening of the shield disposed over the photosensitive circuit. An outer section of the shield is attached to the substrate and includes a second opening. An encapsulant is deposited over the substrate and semiconductor die. The encapsulant extends into the first opening and a first area between the shield and substrate while a second area over the photosensitive circuit remains devoid of the encapsulant.