Sourabh will next face Korea's Heo Kwang Hee for a place in the men's singles final.
The 26-year-old Indian, who won two BWF Super 100 titles in Hyderabad and Vietnam this year, went down 15-21, 17-21 to world no 22 Tzu Wei in a 48-minute summit clash to miss out on his maiden Super 300 crown.
B Sai Praneeth went down fighting to second seed Jonatan Christie of Indonesia in the men's singles semi-finals of the New Zealand Open badminton in Auckland on Saturday.
The match comes on the heels of one of the biggest upsets in badminton history on Wednesday night, when men's singles world number one Kento Momota's Olympic dreams were crushed by number 38 South Korea's Heo Kwang-hee.
Sourabh kept moving ahead despite a spirited fight from Heo and eventually pocketed the match.
The top seeded Indian duo, who reached the semi-finals of the season-opening Malaysia Open super 1000, was scheduled to face Chinese Taipei's Su Ching Heng and Ye Hong Wei in the opening round.
Indian badminton stalwarts P V Sindhu and Saina Nehwal suffered contrasting fortunes at the Malaysia Open Super 750 tournament, the former progressing to the second round and the latter bowing out after losing her opener in Kuala Lumpur, Malaysia, on Wednesday.
Teenage shuttler Lakshya Sen reaffirmed his status as one of India's rising talent as he gave legendary Lin Dan a scare before losing in three games at the Auckland Open Badminton Championship, in Auckland, on Thursday.
A summary of sports events and persons who made news on Thursday.
Saina Nehwal dug deep for a fighting win over Thai rival Ratchanok Intanon while Kidambi Srikanth too continued his good run to make the semifinals of the $ 750,000 Australian Super Series Badminton tournament.
Enduring the worst injury phase of his career, Indian shuttler Parupalli Kashyap says he had doubts if he would be able to play again after dislocating his right shoulder at the Premier Badminton League in January.
A summary of sports events and sports persons, who made news on Saturday.
A summary of sports events and persons who made news on Friday