An electronic system (68) is described comprising a semiconductor package (10) mounted to a system substrate (70). The method for fabricating the package (10) includes the steps of: attaching a discrete component (12) to a substrate (16), placing a die attach polymer (22) on the discrete component (12) and the substrate (16), pressing the die (14) into the die attach polymer (22) to encapsulate the discrete component (12) in a recess (20) and attaching the die (14) to the substrate (16), and then placing the die (14) in electrical communication with the discrete component (12). The semiconductor die (14) on the substrate (16) is in electrical communication with the contacts (38). The die (14) includes the recess (20), and the discrete component (12) is contained in the recess (20) encapsulated in the die attach polymer (22).