A semiconductor device includes an IPD structure, a first semiconductor die mounted to the IPD structure with a flipchip interconnect, and a plurality of first conductive posts that are disposed adjacent to the first semiconductor die. The semiconductor device further includes a first molding compound that is disposed over the first conductive posts and first semiconductor die, a core structure bonded to the first conductive posts over the first semiconductor die, and a plurality of conductive TSVs disposed in the core structure. The semiconductor device further includes a plurality of second conductive posts that are disposed over the core structure, a second semiconductor die mounted over the core structure, and a second molding compound disposed over the second conductive posts and the second semiconductor die. The second semiconductor die is electrically connected to the core structure.