A semiconductor device is made by providing a temporary carrier for supporting the semiconductor device. An integrated passive device (IPD) is mounted to the temporary carrier using an adhesive. The IPD includes a capacitor and a resistor and has a plurality of through-silicon vias (TSVs). A discrete component is mounted to the temporary carrier using the adhesive. The discrete component includes a capacitor. The IPD and the discrete component are encapsulated using a molding compound. A first metal layer is formed over the molding compound. The first metal layer is connected to the TSVs of the IPD and forms an inductor. The temporary carrier and the adhesive are removed, and a second metal layer is formed over the IPD and the discrete component. The second metal layer interconnects the IPD and the discrete component and forms an inductor. An optional interconnect structure is formed over the second metal layer.