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Dutchman Van Gerwen failed to hold his throw against the 16-time world champion, as Taylor fired in four ton-plus finishes including a superb 167.
Gary Anderson also reached Sunday's last four, beating James Wade 10-7.
Adrian Lewis beat Michael Smith 10-8 earlier in the evening, while Peter Wright downed Robert Thornton 10-6.
Stoke thrower Taylor looked at his imperious best against a stunned Van Gerwen, landing six maximums before sealing the match with a 120 checkout.
Taylor, 56, earlier beat Wright 10-5, while Van Gerwen beat Thornton by the same scoreline.
Wade registered an impressive 10-3 win over world number three Lewis, while world champion Anderson beat Smith 10-5.
Van Gerwen now faces a showdown with Wright on Sunday for a last four spot and Taylor rounds off the group stage against Thornton.
Wade plays St Helens' Smith in Group B and Anderson takes on two-time world champion Lewis.
Watch  live coverage of the Champions League of Darts on BBC Two and online from 13:00 BST on Sunday.
Adrian Lewis 10-8 Michael Smith
Gary Anderson 10-7 James Wade
Michael van Gerwen 4-10 Phil Taylor
Peter Wright 10-6 Robert Thornton
Gary Anderson 10-5 Michael Smith
Adrian Lewis 3-10 James Wade
Phil Taylor 10-5 Peter Wright
Michael van Gerwen 10-5 Robert Thornton
Phil Taylor thumped world number one Michael van Gerwen 10-4 to qualify for the semi-finals of the inaugural PDC Champions League of Darts in Cardiff.