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Sindhu, seeded seventh, squandered a game lead to lose 13-21 21-15 21-13 to the second seed Tai Tzu, a silver medallist at the Tokyo Olympics.
By virtue of the win, the Chinese Taipei shuttler extended her domination over the Indian ace, leading 16-5 on the head-to-head record. Sindhu has now lost six matches on the trot against Tai Tzu.
Indian challenge ended in the Super 750 event as HS Prannoy also made a quarterfinal exit, losing to seventh-seeded Jonatan Christie of Indonesia 18-21 16-21 in 44-minute men’s singles match.
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Sindhu started the second game brightly but her fancied rival dominated the proceedings after the early exchanges to lead 11-3 at the break. Tai Tzu continued in the same vein after the change of ends and extended her lead to 14-3 before Sindhu relied on her powerful smashes to reduce the deficit to 17-15. Tai Tzu, however, regrouped quickly and pocketed the next four points to draw level in the contest.
It was a close contest in the decider as both the shuttlers fought tooth and nail till 12 points before Tai Tzu put Sindhu under pressure with a mix of drop shots and smashes to clinch the third game and keep her title defence hopes alive.