The 12th-seeded Carreno Busta played the solid all-around game that has quietly propelled him through five matches at Flushing Meadows without dropping a single set.
"It's something that I've always dreamed of," Carreno Busta said in an on-court interview.
"I'm very excited to be in the semi-finals at this tournament. Thanks to all the people for your support."
He will next face either American Sam Querrey or big-serving Kevin Anderson of South Africa, who play their quarter-final later on Tuesday.
Schwartzman, perhaps still feeling the effect of a leg injury he picked up during his fourth-round win over Frenchman Lucas Pouille, was broken in his first service game of each set.
The Argentine added to his woes by making 35 unforced errors and winning just 33 percent of points on his second serve.
Momentum swung firmly in Carreno Busta's favour at 3-4 in the second set after the Spaniard fell behind 0-40. Schwartzman failed to capitalise and Carreno Busta won five consecutive points to even the set up 4-4.
Carreno Busta broke the disheartened Schwartzman in the next game and cruised to the finish line.
(Reporting by Rory Carroll; Editing by Toby Davis)
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