The SAR duo drew first blood after a tightly-contested opening game against Dechapol Puavaranukroh and Supissara Paewsampran, which they won 22-20.
But the tables quickly turned when the Thais bounced back to claim game two 21-14, setting up a decisive third game.
After jumping to an early lead, the SAR duo ran out of gas with the score level at 12, going on to concede seven points in a row before losing 14-21.
Tang and Tse were vying for their second title of the year, having clinched gold at the Asia Championships in Ningbo in April.
The pair booked their spot in the quarters with a dominant straight games win over Indonesia’s Rehan Naufal Kusharjanto and Gloria Emanuelle Widjaja on Thursday.






