The 34-year-old Indian shuttler took 55 minutes to prevail over his 15th seeded rival 21-12 12-21 22-20 at the RWE-Sporthalle here.
The Bangalorean will now lock horns with 12th seeded Dane Hans-Kristian Vittinghus in the summit clash. Vittinghus defeated fourth seeded German Marc Zwiebler 21-16 21-13 in the other semifinal clash.
World number 24 Tien Chen Chou has beaten Arvind twice in the past but that didn't count for much as the Indian dug deep from his experience to show the Taiwanese the door.
Chou, however, meted out the same treatment to Arvind in the second game when he broke off at 6-6 and marched ahead.
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But in the decider, Arvind fought till the end after Chou had stepped up the competition. The duo battled from 6-6 to 14-14 with the lead changing hands frequently.
The Indian was ahead by a point lead after that and even though Chou caught up at 20-20, Arvind successfully staved off the challenge in the end.