A semiconductor device has a one-layer interconnect substrate and electrical component disposed over a first surface of the interconnect substrate. The electrical components can be discrete electrical devices, IPDs, semiconductor die, semiconductor packages, surface mount devices, and RF components. An RDL with a graphene core shell is formed over a second surface of the interconnect substrate. The graphene core shell has a copper core and a graphene coating formed over the copper core. The RDL further has a matrix to embed the graphene core shell. The graphene core shells through RDL form an electrical path. The RDL can be thermoset material or polymer or composite epoxy type matrix. The graphene core shell is embedded within the thermoset material or polymer or composite epoxy type matrix. The RDL with graphene core shell is useful for electrical conductivity and electrical interconnect within an SIP.