Also read: PV Sindhu creates history
The fourth seed Saina lost to the 16th seed Bae Yeon Ju 21-23, 9-21 in a 40-minute match at the Tianhe Indoor Stadium.
The South Korean counterpart took advantage over Saina's errors and booked her place in the last four.
Meanwhile the only Indian hope in men's category Parupalli Kashyap also lost to the World No.3 Du Pengyu of China 21-16, 20-22, 15-21 in the quarter-finals.
Earlier the tenth seeded Sindhu defeated the London Olympics silver medalist Wang Yihan 21-18, 23-21 in 55 minutes in the women's singles third round at the Tianhe Indoor Stadium.