A semiconductor device has a core semiconductor device with a through silicon via (TSV). The core semiconductor device includes a plurality of stacked semiconductor die and semiconductor component. An insulating layer is formed around the core semiconductor device. A conductive via is formed through the insulating layer. A first interconnect structure is formed over a first side of the core semiconductor device. The first interconnect structure is electrically connected to the TSV. A second interconnect structure is formed over a second side of the core semiconductor device. The second interconnect structure is electrically connected to the TSV. The first and second interconnect structures include a plurality of conductive layers separated by insulating layers. A semiconductor die is mounted to the first interconnect structure. The semiconductor die is electrically connected to the core semiconductor device through the first and second interconnect structures and TSV.