Semiconductor device and method of disposing electrical components over side surfaces of interconnect substrate

A semiconductor device has an interconnect substrate with a conductive via. A first electrical component is disposed over a major surface of the interconnect substrate. An electrical interconnect compound is disposed over the conductive via exposed from a side surface of the interconnect substrate. The electrical interconnect compound can be applied with a tilt nozzle oriented at an angle. A second electrical component is disposed on the electrical interconnect compound on the conductive via exposed from the side surface of the interconnect substate. A plurality of second electrical components can be disposed on two or more side surfaces of the interconnect substrate. The interconnect substrate can have a plurality of stacked conductive vias and the second electrical component is disposed over the stacked conductive vias. An encapsulant is deposited over the first electrical component and interconnect substrate. A shielding layer can be formed over the encapsulant.