This study examines the structure and mechanical properties of billets produced via hot pressing from ball-milled chips of Al-Si-SiC metal matrix composites. The chips, derived from cast composites, were subjected to high-energy ball milling to obtain powder, which was then consolidated by hot pressing at 450 °C. The findings reveal that machining reduces the average size of SiC particles from 41.9 to 12.9 µm, and ball milling further reduces it to 5.9 µm. Powder-pressed billets exhibited a more homogeneous SiC distribution and showed ∼1.9 times higher hardness than the cast material, while chip-pressed billets showed only a ∼13 % increase. Compression tests indicated the highest yield strength of 333 ± 7 MPa in powder-pressed samples, compared to 225 ± 6 MPa in the cast state and 143 ± 26 MPa in chip-pressed samples. However, powder-pressed samples had lower ductility (∼3 %) than cast and chip-pressed samples. The influence of hot pressing temperature (350–500 °C) on the structure and mechanical properties was also explored, showing that higher temperatures improve silicon distribution but slightly reduce hardness and yield strength. Recycled composite materials from chip waste are promising for producing consolidated billets, especially for small-sized components in machinery and instrument engineering.