Preparation of semi-solid microstructure of 7075 aluminum alloy industrial extrusion billets was studied in this paper. A new semi-solid microstructure preparation process is proposed. In the treatment, melting-stirring and predeformation of the alloy billets are not required. An ideal microstructure and higher dimensional precision of the billet can be obtained only with a direct heating and insulation method. The influences of different heating temperatures and insulation time on the microstructure evolution were studied with orthogonal testing methods. The obtained microstructure was observed and analyzed by optical microscopy, and the formation mechanism of the semi-solid microstructure is further discussed. The results indicate that a fine microstructure can be obtained with the proposed process and the processing parameters can be controlled over a wide range. Also, the grain microstructure obtained by the present process is better than that of the SIMA. For 7075 aluminum alloy billets, perfect fine equiaxial grains can be obtained under a heating temperature of 620°C and a holding time of about 25 minutes. The average grain size is around 80μm.