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Mixed double pair of Tanisha Crasto and Dhruv Kapila are the other Indians remaining in the event.
Sindhu continued her poor form as she failed to get past the opening hurdle of the Super 500 tournament
H S Prannoy and P V Sindhu will be in action in the Super 500 event on Wednesday.
The double Olympic medallist let slip an 11-3 advantage in the decider.
Sindhu will face second seed and world No. 7 Wang Zhi Yi of China in the summit clash.
Ashmita Chaliha lost to sixth-seeded Chinese Zhang Yi Ma in another quarterfinal.
Sindhu, seeded fifth, will next face top seed Han Yue in a revenge match.
Mixed doubles pair of B Sumeeth Reddy and N Sikki Reddy also advanced to the second round.
It was also the Keralite's first title after the triumph in the 2017 US Open.
Prannoy's opponent Christian Adinata of Indonesia conceded the semifinal match following a nasty knee injury.
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