A semiconductor device is made by providing a temporary carrier and providing a semiconductor die having a plurality of bumps formed on its active surface. An adhesive material is deposited as a plurality of islands or bumps on the carrier or active surface of the semiconductor die. The adhesive layer can also be deposited as a continuous layer over the carrier or active surface of the die. The semiconductor die is mounted to the carrier. An encapsulant is deposited over the die and carrier. The adhesive material holds the semiconductor die in place to the carrier while depositing the encapsulant. An interconnect structure is formed over the active surface of the die. The interconnect structure is electrically connected to the bumps of the semiconductor die. The adhesive material can be removed prior to forming the interconnect structure, or the interconnect structure can be formed over the adhesive material.