Methods are provided for fabricating a semiconductor device. In accordance with an exemplary embodiment, a method comprises the steps of providing a semiconductor die having a conductive terminal, forming an insulating layer overlying the semiconductor die, and forming a cavity in the insulating layer which exposes the conductive terminal. The method also comprises forming a first stress-relief layer in the cavity, forming an interconnecting structure having a first end electrically coupled to the first stress-relief layer, and having a second end, and electrically and physically coupling the second end of the interconnecting structure to a packaging substrate.