The design, fabrication, and characteristics calculation of 980-nm optically pumped semiconductor disk laser are reported. The laser combines a vertical cavity semiconductor laser with a partically reflecting out coupler and an external cavity for mode control. Pumped by 808-nm diode laser, the disk laser directly generates a linearly polarized, circularly symmetric, diffraction-limited beam with watt-level power. Calculation shows the laser with active region of InGaAs/GaAsP/AlGaAs system can operate at near 500-mW in a single transverse mode.