Schiavone needed four sets to eliminate the sixth-ranked Szavay 7-6 (7-5), 2-6, 6-4.
Szavay, who won the Palermo event last week, was riding a seven-match winning streak before being upended on the clay courts at Bad Gastein.
Schiavone will face fourth-seeded Estonian Kaia Kanepi on Saturday. Kanepi downed Czech Renata Voracova 6-4, 3-6, 6-0.
Also moving to the semis was Saturday's other semi were seventh-seeded Italian Karin Knapp, who beat Spanish qualifier Maria Jose Martinez Sanchez 4-6, 7-6 (7-2), 6-1. Austria's Yvonne Meusburger upended eighth-seeded Spaniard Lourdes Dominguez Lino 6-1, 6-4.