The Cypriot fired nine aces and won 73 per cent of his service points to overcome Ferrer in an enthralling contest that lasted one hour and 30 minutes.
The 20-year-old former Australian Open junior winner will face Fernando Gonzalez in the Swiss Indoors final.
Rafael Nadal claimed a 3-6, 6-2, 6-3 victory over Cypriot Marcos Baghdatis to reach the second round of the Dubai Open.
Cypriot Marcos Baghdatis defended himself in the face of a race controversy on Friday after the release of a video in which he appeared to chant anti-Turkish slogans at a party. 'In that video from 2007 I was supporting the interest of my country, Cyprus, while protesting against a situation that is not recognised by the United Nations,' he said.
In other first round matches, at the World Indoor Tournament, second seed Nikolay Davydenko beat qualifier Jan Hernych while David Ferrer advanced with a victory over Italy's Simone Bolelli.
Roger Federer squandered three match points before suffering a shock 5-7, 7-5, 7-6 defeat at the hands of Cypriot Marcos Baghdatis at the Indian Wells ATP tournament on Tuesday.
Andy Murray's first match since losing his third grand slam final ended in defeat on Wednesday when he was knocked out of the World Indoor Tournament by unseeded Cypriot Marcos Baghdatis.
Cypriot Marcos Baghdatis won his first ATP title with a 6-4 6-0 victory over Croatian Mario Ancic at the China Open on Sunday.
Croatian top seed Ivan Ljubicic beat Russia's Mikhail Youzhny 2-6 6-3 7-5 on Saturday to set up a final with second seeded Cypriot Marcos Baghdatis in the Zagreb Open.
Cypriot Marcos Baghdatis and Frenchman Jo Wilfried Tsonga joined the list of high-profile pull-outs from the ATP tournament, to be played at the CCI, Mumbai, from September 24 to 30.
Third-seeded Cypriot Marcos Baghdatis had low expectations for this week's LA Open but gave himself a welcome boost by beating American wildcard Ryan Sweeting 3-6, 6-2, 6-3 in the second round on Wednesday.
World number one Rafa Nadal began his quest for a third claycourt title in a month with a 6-1, 6-3 drubbing of unseeded Cypriot Marcos Baghdatis in the Madrid Masters second round Wednesday.
Overpowers the ailing Cypriot to win the hardcourt title for third time in succession
Two-time Wimbledon champion Rafa Nadal kicked off his grasscourt season with a 7-6(5), 6-7(4), 6-2 defeat of Cypriot Marcos Baghdatis at the Mercedes Cup in Stuttgart on Thursday.
Cypriot tennis player Marcos Baghdatis has withdrawn from next month's Rio Olympics after failing to recover from an elbow injury, the World No 42 said on Friday.
Marcos Baghdatis beat Russia's Marat Safin 6-4, 6-4, 2-6, 3-6, 6-2 in the second round of the Australian Open.
Chilean Fernando Gonzalez became the seventh player to qualify for this month's Masters Cup despite losing in the second round of this week's Paris Masters.
Marcos beat holder Nikolay Davydenko 6-2, 6-2 in the third round of the Paris Masters Series.
Former world number one Martina Hingis was knocked out by Jelena Jankovic at the Sydney International.
Former world number eight Marcos Baghdatis won the third ATP title of his career on Sunday with a 6-1, 7-5 victory over Belgian Olivier Rochus in the Stockholm Open final.
Former Australian Open finalist Marcos Baghdatis crashed out of the Brisbane International on Monday with a first round loss to Finland's Jarkko Nieminen. Baghdatis, who developed a cult following in Australia during his fairytale run to the 2006 Australian Open final, squandered an early lead to lose 5-7, 6-1, 6-4.
India's Somdev Devvarman entered the second round of the Dubai Duty Free Tennis Championship beating Russia's Igor Kunitsyn in straight sets, in Dubai.
Unseeded Vince Spadea advanced to the quarter-finals of the U.S. Clay Court Championships after the Australian Open finalist retired with a sore back.
Sixth seeded Spaniard Moya was beaten 7-6, 5-7, 6-2 by local favourite Stefan Koubek while Cypriot eighth seed Baghdatis went down to Italy's Andreas Seppi in a surprisingly one-sided 6-2, 6-2 defeat at the Vienna Open.
The Cypriot confessed that he found it difficult to cope with fame after finishing runner-up to Roger Federer in the 2006 Australian Open.
Saturday's draw pitted Cypriot Marcos Baghdatis, the second seed, against Dutchman Robin Haase while defending champion Xavier Malisse of Belgium will play Giles Muller of Luxembourg.
Saturday's Chennai Open draw pitted Cypriot Marcos Baghdatis, the second seed, against Dutchman Robin Haase while defending champion Xavier Malisse of Belgium will play Giles Muller of Luxembourg.
Defending champion Tomas Berdych advanced to the Stockholm Open final after his opponent Marcos Baghdatis was forced to withdraw from their semi-final due to injury trailing by a set.
Home favourite Robin Soderling had to withdraw from his Stockholm Open semi-final on Saturday, sending Marcos Baghdatis through to the final without the Cypriot having to strike a ball.
Andy Roddick and John Isner set up a mouth-watering semi-final between two big servers after the Americans won their respective quarter-final matches at the Winston-Salem Open on Thursday.
Marcos Baghdatis set up a final against Andy Roddick at the Kooyong Classic with a 6-2, 7-5 win over Chilean Fernando Gonzalez on Friday, declaring himself ready for a good run at next week's Australian Open.
World number two Roger Federer comfortably beat Cypriot Marcos Baghdatis 6-4, 6-3 on Saturday to set up a meeting with American Mardy Fish in the final of the Cincinnati Masters. Fish had earlier pulled off a surprise turnaround win over fellow American Andy Roddick to claim a 4-6, 7-6, 6-1 victory and advance to his third Masters series final.
Second seed Novak Djokovic produced a few flashes of temper as he fought back from a set and a break down to beat Cypriot Marcos Baghdatis 6-7, 6-3, 6-4 in the Dubai Championships semi-finals on Friday.
Lleyton Hewitt slipped out of the top 10 to 11th following his second-round defeat at the Australian Open.
Andy Roddick entered the fourth round with a 6-1, 6-2, 6-2 win over France's Julien Benneteau
Second seed Andy Murray flirted with disaster before beating nemesis Marcos Baghdatis 7-6, 2-6, 6-4 in a cliffhanger to reach the last 16 of the Japan Open on Wednesday.