A semiconductor device has a semiconductor die with an encapsulant deposited over and around the semiconductor die. An opening is formed in a first surface of the encapsulant by etching or LDA. A plurality of bumps is optionally formed over the semiconductor die. A bump is recessed within the opening of the encapsulant. A conductive ink is formed over the first surface of the encapsulant, bump and sidewall of the opening. The conductive ink can be applied by a printing process. An interconnect structure is formed over a second surface of the encapsulant opposite the first surface of the encapsulant. The interconnect structure is electrically connected to the semiconductor die. A semiconductor package is disposed over the first surface of the encapsulant with a plurality of bumps electrically connected to the conductive ink layer. The semiconductor package may contain a memory device.