Diode-pumped Q-switched Ti:Er:LiNbO3 waveguide lasers have been developed with a monolithically integrated folded Mach-Zehnder type modulator of high extinction ratio as the Q-switch. The lasers are operated at 1562nm wavelength, emitting pulses of 4.3ns halfwidth with up to 1.44kW peak power at 1kHz repetition frequency. Good agreement between experimental and theoretical results has been obtained.