The 2020 US Open champion had been out of action after injuring his wrist in June 2021 and could not defend his title at Flushing Meadows.
Thiem, who has dropped to 274 in the rankings, defeated qualifier Juan Pablo Varillas 6-4 6-3 at the ATP 250 claycourt event in Gstaad and will face second seed Matteo Berrettini in Saturday's semi-final.
"Tomorrow I can go into the match free, trying to do my best," Thiem said in his on-court interview.
"When I travelled to Bastad last week I didn't expect to reach the quarter-finals there and then the semi-finals here. It is really, really good and I am happy with the progress."
Thiem is aiming to win in Gstaad for the second time following his triumph in 2015.