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The generation of high peak power femtosecond pulses from an all semiconductor laser system is demonstrated. The system is based on a passively modelocked two-section laser diode in an external cavity, a tapered amplifier and a compact external pulse compressor. Pulse durations are achieved below 600 fs with an average optical power above 500 mW at a repetition rate of 330 MHz. This corresponds to a peak power of 2.5 kW, which is the highest value reported for an all semiconductor ultrafast laser system so far.