A semiconductor device has a first insulating layer formed over a carrier. A first conductive layer is formed over the first insulating layer. A second insulating layer is formed over the first conductive layer. Vias are formed through the second insulating layer. A second conductive layer is formed over the second insulating layer and extends into the vias. A semiconductor die is mounted to the second conductive layer. A bond wire is formed between a contact pad on the semiconductor die and the second conductive layer. The second conductive layer extends to a mounting site of the semiconductor die to minimize the bond wire span. An encapsulant is deposited over the semiconductor die. A portion of the first insulating layer is removed to expose the second conductive layer. A portion of the first conductive layer is removed to electrically isolate remaining portions of the first conductive layer.