Method of packaging a semiconductor device

A method of packaging a semiconductor device, the method comprising:

• forming an insulating layer by a spin-on coating process over a die, wherein the die has a contact pad, wherein the insulating layer includes a thick portion and a thin portion, wherein the thin portion is over a top surface of the contact pad;
• dispensing a molding compound to cover the die and a space between the die and a neighboring device, wherein the molding compound covers the thin portion of the insulating layer;
• and
• planarizing a surface of the die by removing the molding compound and the insulating layer over the contact pad.

A method of packaging a semiconductor device, the method comprising:

• forming an insulating layer by a spin-on coating process over a die, wherein the die has a contact pad;
• dispensing a molding compound to cover the die and a space between the die and a neighboring device;
• planarizing a surface of the die by removing the molding compound and the insulating layer over the contact pad, wherein the contact pad separates a first planarized portion of the molding compound from a second planarized portion of the molding compound;
• and
• bonding the die to a fan-out structure.