A semiconductor device is made by providing a substrate, forming a first insulation layer over the substrate, forming a first conductive layer over the first insulation layer, forming a second insulation layer over the first conductive layer, and forming a second conductive layer over the second insulation layer. A portion of the second insulation layer, first conductive layer, and second conductive layer form an integrated passive device (IPD). The IPD can be an inductor, capacitor, or resistor. A plurality of conductive pillars is formed over the second conductive layer. One conductive pillar removes heat from the semiconductor device. A third insulation layer is formed over the IPD and around the plurality of conductive pillars. A shield layer is formed over the IPD, third insulation layer, and conductive pillars. The shield layer is electrically connected to the conductive pillars to shield the IPD from electromagnetic interference.