Roger crashes out of Aus Open
The four-time champion was defeated by his 46-ranked opponent 6-4 7-6 (7-5) 4-6 7-6 (7-5).
This will be the first time in eight years, the Australian Open semifinals will not feature Federer.
Seppi had not defeated the Swiss icon for a single time in their past 10 meetings.
“Just a bad day,” Federer was quoted as saying by ausopen.com.
He said,“It had things to do with Andreas' game and with my game as well. You put those things together, all of a sudden you're playing a match you don't want to play.”
Seppi said: "You don't play every day on a centre court, in front of a full stadium, against Roger Federer."
"But I was very calm. Is a special moment for me," he said.
Spain's Roger Federer and Russian icon Maria Sharapova has moved to the next round quite smoothly.
Nadal defeated Israel's Dudi Sela 6-1 6-0 7-5 to move to the fourth round of the tournament.
In the women's singles event, Sharapova defeated Zarina Diyas 6-1 6-1 to move to the round of four where she will face Shuai Peng of China.
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