Passive mode locking of an optically pumped, InP-based, 1550 nm semiconductor disk laser by using a GaInNAs saturable absorber mirror is demonstrated. To reduce material heating and enable high-power operation, a 50 mu m thick diamond heat spreader is bonded to the surface of the gain chip. The laser operates at a repetition frequency of 2.97 GHz and emits near-transform-limited 3.2 ps pulses with an average output power of 120 mW.