Integrating ceramic particles into aluminum matrices poses significant challenges due to their limited wettability and high specific volume ratio. This research focused on developing ADC12/SiC aluminum composites with varying SiC concentrations (1.5, 2.5, and 3.5 wt%) through an innovative fabrication process. Initially, ADC12/SiC master pellets containing a high concentration of homogenously dispersed 1-μm SiC particles were produced. Subsequently, these master pellets were introduced into the molten ADC12 alloy, followed by the dispersion of SiC particles via stir casting assisted by ultrasonication. The study assessed the impact of SiC weight fractions on the microstructures, mechanical properties, and machinability of the fabricated composites. The results revealed significant microstructural improvements and a more even distribution of SiC reinforcement inside the ADC12 matrix after the application of this innovative processing method. Increased SiC concentration led to notable refinement of α-aluminum grains and eutectic Si, as well as a more uniform dispersion of intermetallic phases. Additionally, a substantial increase in tensile properties and hardness was observed with the increment of SiC content. Particularly, the ADC12/3.5 wt%SiC composite exhibited a 46.73% increase in hardness and notable enhancements in yield strength, ultimate tensile strength, and elongation, denoted as 201.7 MPa, 241.1 MPa, and 3.40%, respectively, as compared with those of the unreinforced ADC12 alloy. Moreover, the ADC12/SiC composites demonstrated reduced surface roughness compared to the unmodified ADC12 alloy, indicative of a superior surface finish. With the addition of a high SiC content, the chip morphology was observed to change from continuous to discontinuous following a turning operation.