A semiconductor device has a semiconductor die with an insulation layer formed over an active surface of the semiconductor die. A conductive layer is formed over the first insulating layer electrically connected to the active surface. A plurality of conductive pillars is formed over the conductive layer. A plurality of dummy pillars is formed over the first insulating layer electrically isolated from the conductive layer and conductive pillars. The semiconductor die is mounted to a substrate. A height of the dummy pillars is greater than a height of the conductive pillars to maintain the standoff distance between the semiconductor die and substrate. The dummy pillars can be formed over the substrate. The dummy pillars are disposed at corners of the semiconductor die and a central region of the semiconductor die. A mold underfill material is deposited between the semiconductor die and substrate.