The main aim of this research was to investigate the aluminum AlSi9Cu3(Fe) machining chips recycling possibility utilizing a direct hot extrusion process and thixoforming. The thixo feedstock was prepared directly from the aluminum alloy AlSi9Cu3(Fe) machining chips waste without any remelting step. The machining chips were compacted, and direct hot extruded to create the solid samples and thixo feedstock. The aluminum alloy AlSi9Cu3(Fe) machining chips had a high degree of plastic deformation and after extrusion and heating in the semisolid temperature range, the suitable globular microstructure was achieved, which is a precondition for a successful thixoforming process. This approach can be characterized as a semisolid recycling process with a lower energy consumption, a higher material yield, and reduced greenhouse gas emissions into the atmosphere compared with conventional casting and recycling. Optical metallography, scanning electron microscopy accompanied with energy dispersive spectroscopy, electrical conductivity, and mechanical properties investigation were performed on the reference casted sample with a dendritic microstructure, the extruded sample with a severely deformed microstructure, and finally the thixoformed samples with a globular microstructure produced with different parameters, according to the Taguchi L4 (23) experimental plan.