A package includes a sensor die, and an encapsulating material encapsulating the sensor die therein. A top surface of the encapsulating material is substantially coplanar with or higher than a top surface of the sensor die. A plurality of sensing electrodes is higher than the sensor die and the encapsulating material. The plurality of sensing electrodes is arranged as a plurality of rows and columns, and the plurality of sensing electrodes is electrically coupled to the sensor die. A dielectric layer covers the plurality of sensing electrodes. The invention further relates to a formation method of the package.