The main aim of this research was to investigate the aluminum alloy AlSi9Cu3(Fe) machining chips recycling possibility utilizing the semisolid recycling method. Machining chips were compacted, direct hot extruded and afterward thixoformed in order to obtain recycled specimens without significant material loss, which usually occurs during conventional recycling by remelting. Machining chips were severely deformed during the machining process and direct hot extrusion which led to the formation of globular microstructure during heating at thixoforming temperature. That is an important step to achieve the thixotropy effect and to perform successful thixoforming. To investigate the influence of the heat treatment on specimen properties solid solution and artificial aging were performed on as casted, extruded and thixoformed specimens. To characterize thixoformed recycled specimens and to compare them with casted and chip based extruded specimens, optical metallography, compressive test, hardness, and electrical conductivity analysis were performed.