We　demonstrate　a　compact　two-chip　terahertz-emitting　vertical-external-cavity　surface-emitting　laser　source,　which　provides　1　THz　output　based　on　intracavity　frequency　conversion　of　dual-wavelength　emission　in　a　periodically　poled　lithium　niobate　crystal.　The　type-I　frequency　conversion　scheme　at　room　temperature　highly　benefits　from　the　power-scaling　possibilities　in　a　multi-chip　cavity　with　intracavity　powers　in　excess　of　500　W.　(C)　2019　Optical　Society　of　America.