A novel dispersion-managed breathing-mode semiconductor mode-locked ring laser is developed. The "breathing-mode" designation derives from the fact that intracavity pulses are alternately stretched and compressed as they circulate around the ring resonator. The pulses are stretched before entering the semiconductor gain medium to minimize the detrimental strong integrating self-phase modulation and to enable efficient pulse amplification. Subsequently compressed pulses facilitate bleaching the semiconductor saturable absorber. The intracavity pulse compression ratio is higher than 50. Down chirping when compared to up chirping allows broader mode-locked spectra and shorter pulse generation owing to temporal and spectral semiconductor gain dynamics. Pulses as short as 185 fs, with a peak power of ~230 w, and a focused intensity of ~4.6 gw/cm2 are generated by linear down chirp compensation and characterized by shg-frog method. To our knowledge, this is the highest peak power and the shortest pulse generation from an electrically pumped all-semiconductor system. The very good agreement between the simulated and the measured results verifies our understanding and ability to control the physical mechanisms involved in the pulse shaping within the ring cavity. Application trends such as continuum generation via a photonic crystal fiber, two-photon fluorescence imaging, and ultrafast pulse source for pump-probe experiments are demonstrated.