Microelectromechanical system having movable element integrated into substrate-based package

A method of fabricating a MEMS device is disclosed. A metal layer is provided over a first surface of a substrate including over an opening. The metal layer is patterned to define a membrane segment and a pad, with the membrane segment extending at least partially across the opening. An integrated circuit chip is attached over the opening to the membrane segment and pad, with the integrated circuit separated from an extending portion of the membrane segment by a gap. The integrated circuit chip includes a conductive member so that deflection of the extending portion relative to the conductive member can be measured as a change in capacitance.