A semiconductor device has a first package layer. A first shielding layer is formed over the first package layer. The first shielding layer is patterned to form a redistribution layer. An electrical component is disposed over the redistribution layer. An encapsulant is deposited over the electrical component. A second shielding layer is formed over the encapsulant. The second shielding layer is patterned. The patterning of the first shielding layer and second shielding layer can be done with a laser. The second shielding layer can be patterned to form an antenna.