Taufik (left), who was the 2004 Olympic gold medallist and 2005 world champion, carved out a 21-19, 21-19 victory over 2010 world champion Chen Jin, a defeat which could mean the Chinese star won’t qualify for the London Games.
“I’m always happy every time I beat Chen Jin as he is a tough opponent,” said Taufik.
Chen Jin is currently ranked fifth in the world and needed to break into the top four as China already have Lin Dan and Chen Jin at No. 2 and No. 3 in the world.
Malaysia’s Lee Chong Wei and Denmark’s Peter Gade are No. 1 and No. 4 respectively and each country can only have three representatives in the Olympics if all three are among the top four players in the world.
The Olympic qualifying period ends on April 29 and the All England is the final OSIM BWF World Superseries Premier tournament during this period.
Taufik will now take on four-time world champion and reigning Olympic winner Lin Dan for a place in the semi-finals.
Lin Dan reached the last eight when he outplayed Malaysian qualifier Chong Wei Feng 21-13, 21-16.
In the top half of the draw, two-time defending champion Chong Wei was pushed hard by Denmark's Hans-Kristian Vittinghus before booking his place in the quarter-finals.
Chong Wei, who is searching for a hattrick of All England crowns, needed 45 minutes before beating the Bitburger Open champion 23-21, 21-18. He will now play Indonesia's Dionysius Hayom Rumbaka, who stunned Japanese sixth seed Sho Sasaki 21-18, 21-19.
In the men’s doubles, German Open champions Hong Wei-Shen Ye took out former winner and sixth seeds Koo Kien Keat-Tan Boon Heong (right), in three close games.
They won 12-21, 21-17, 22-20, and will now meet second seeds Jung Jae Sung-Lee Yong Dae for a place in the final.
The South Koreans will be looking for revenge after losing to them in Sunday’s final.
Defending champions Mathias Boe-Carsten Mogensen are also through to the quarter-finals after beating Olympic champions Markis Kido-Hendra Setiawan 21-18, 21-17.
For full results, click here.