It was the worst ever defeat for Germany's Under-21 team.
The Germans, with World Cup winner Matthias Ginter and Champions League-winning keeper Marc-Andre ter Stegen in their lineup, failed to mount a serious challenge at any point.
A terrible result was capped off by a red card for Germany's Leonardo Bittencourt in the 75th minute for a second bookable offence.
Portugal captain Sergio Oliveira hit the post after 15 minutes but Bernardo Silva did better in the 24th when he charged into the box and fired in.
Ricardo doubled their lead 11 minutes later, turning the ball in at the far post as the powerful William Carvalho, on the transfer wish list of several top European clubs, controlled the midfield.
It did not take long for the Portuguese to score again, with Ivan Cavaleiro firing into the top corner on the stroke of halftime as the Germans granted their opponents far too much space to operate.
Portugal again caught the Germans by surprise a minute after the restart when a deflected effort from Joao Mario sent Ter Stegen the wrong way after good early work from Bernardo Silva.
Ricardo Horta completed the rout in the 71st minute tapping in undisturbed from close range as the Germans were caught napping.
Denmark face Sweden in the other semi-final later on Saturday.
(Reporting by Karolos Grohmann; editing by Toby Davis)
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