Ferrer, the 13th seed, knocked out world number five Andy Murray on his way to the last four but he looked outgunned by his in-form opponent early on.
Sixth seed Verdasco, who had beaten Ferrer en route to winning last week's Barcelona Open, produced some glorious shots to race 5-1 ahead.
But his concentration snapped and he threw away the commanding position, losing the next eight games to go a set and 2-0 down in the second.
Verdasco, who needed over three hours to oust world number two Novak Djokovic on Friday, staged a brief comeback, breaking Ferrer after being jeered by the crowd for his wild shots.
Leander Paes and Lukas Dlouhy crashed out after being handed a straight-set defeat by the seventh seeded Polish-Austrian pair of Lukasz Kubot and Oliver Marach in the quarterfinals. The Indo-Czech combination went down 3-6, 4-6 in 76 minutes.
Justine Henin continued her impressive return to tennis when she fought back to beat former world number one Jelena Jankovic 3-6, 7-6, 6-3 in Stuttgart on Friday, leaving her opponent exasperated.
Australia's Samantha Stosur also went through to the semifinals with a 6-3, 6-3 win over China's Li Na.
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