The 20-year-old Pole was dispatched 4-6, 1-6. It was the first time she had played for a place in the Australian Open final.
Świątek, who last month teamed up with a new interim coach, Tomasz Wiktorowski, reached the fourth round of the women’s singles at the 2021 Australian Open.
Świątek in October 2020 won the French Open, claiming her maiden Grand Slam title and becoming the first Pole to lift a Grand Slam singles trophy.
Meanwhile, Poland’s Hubert Hurkacz, Magda Linette and Kamil Majchrzak have all crashed out of this year's Australian Open singles in the second round.
The Australian Open runs until January 30, with Collins due to face home favourite Ashleigh Barty in the women's singles championship match on Saturday.
Source: Eurosport, PAP