A semiconductor device is made by providing a semiconductor die having an optically active area, providing a leadframe or pre-molded laminated substrate having a plurality of contact pads and a light transmitting material disposed between the contact pads, attaching the semiconductor die to the leadframe so that the optically active area is aligned with the light transmitting material to provide a light transmission path to the optically active area, and disposing an underfill material between the semiconductor die and leadframe. The light transmitting material includes an elevated area to prevent the underfill material from blocking the light transmission path. The elevated area includes a dam surrounding the light transmission path, an adhesive ring, or the light transmission path itself can be the elevated area. An adhesive ring can be disposed on the dam. A filler material can be disposed between the light transmitting material and contact pads.