The 17-time grand slam champion reaches last four for 41st time after Mischa Zverev win.
Federer has been installed as one of the favourites for the Australian Open title.
Federer has won the last 3 meetings against his fourth round opponent Nishikori.
The 26-year-old has already eliminated Marin Cilic before today's triumph.
Angelique Kerber joins them after seeing off fellow German Carina Witthoeft.
Stan Wawrinka avoids shock exit against Martin Klizan on day one in Melbourne.
Roger Federer is seeded 17th in the tournament.
Federer missed 6 months on the 2016 season owing to a knee injury.
Murray aiming to win his maiden title in Melbourne after five defeats in the final.
Federer took a 6-month hiatus owing to a knee injury in 2016.
Lebron James, Phil Mickelson and Tiger Woods lead earnings list for the last 12 months.
Federer is currently ranked world number 17 going into the 2017 Australian Open.
Federer represented Switzerland at the Hopman Cup in his first tournament back from injury.
Djokovic and Nadal have played each other on 49 occasions with the Serb leading 26-23.
Federer was playing in his second match as he returned from injury after a six-month gap.
Nadal played his first game on the ATP tour after cutting his 2016 season short in October.
Former world number one overcomes Dan Evans in Perth in first match in six months.
Nadal cut his 2016 season short a month early owing to wrist injury problems.
The big four – Roger Federer, Rafael Nadal, Novak Djokovic and Andy Murray – have dominated the ATP tour for more than a decade.
Nadal is expected to make his first competitive appearance at the MWTC in Abu Dhabi.
Djokovic has won 12 Grand Slam titles thus far in his career.
Federer cut short his 2016 season following his semi-final loss to Raonic at Wimbledon.