Semiconductor Device and Method of Stacking Hybrid Substrates with Embedded Electric Components

A semiconductor device has a first RDL substrate with first conductive pillars formed over a first surface of the first RDL substrate. A first electrical component is disposed over the first surface of the first RDL substrate. A hybrid substrate is bonded to the first RDL substrate. An encapsulant is deposited around the hybrid substrate and first RDL substrate with the first conductive pillars and first electrical component embedded within the encapsulant. A second RDL substrate with second conductive pillars formed over the second RDL substrate and second electrical component disposed over the second RDL substrate can be bonded to the hybrid substrate. A second RDL can be formed over a second surface of the first RDL substrate. A third electrical component is disposed over a second surface of the first RDL substrate. A shielding frame is disposed over the third electrical component.