A method of encapsulating a semiconductor device. The encapsulation method includes a semiconductor chip package assembly having a spacer layer between a top surface of a sheet-like substrate and a contact bearing surface of a semiconductor chip, wherein the substrate has conductive leads thereon, the leads being electrically connected to terminals on a first end and bonded to respective chip contacts on a second end. Typically, the spacer layer is comprised of a compliant or elastomeric material. A protective layer is attached on a bottom surface of the substrate so as to cover the terminals on the substrate. A flowable, curable encapsulant material is deposited around a periphery of the semiconductor chip after the attachment of the protective layer so as to encapsulate the leads. The encapsulant material is then cured. Typically, this encapsulation method is performed on a plurality of chip assemblies simultaneously.