We describe the design of a silicon-based source for radiation in the 0.5-14 THz regime. This new class of devices will permit continuously tunable, milliwatt scale, cw, room temperature operation, a substantial advance over currently available technologies. Our silicon terahertz generator consists of a silicon waveguide for near-infrared radiation, contained within a metal waveguide for terahertz radiation. A nonlinear polymer cladding permits two near-infrared lasers to mix, and through difference-frequency generation produces terahertz output. The small dimensions of the design greatly increase the optical fields, enhancing the nonlinear effect. The design can also be used to detect terahertz radiation.