Unknown Device is a mysterious Ancient artifact that can't be crafted manually.
You find it in the secret chamber in Dark Cavern mission (on the first Garden planet). Reaching it will require a Spider Microsphere or Precursor Microsphere.
Currently the only 2 uses for this item is to either be crafted into Atom Smasher, or extracted for valuable resources.
Extracting Unknown Device takes longer than other items - 6 minutes with Extraction Lab, 2 minutes with Extraction Lab MKII, and 1 minute with Quantum Extractor.
Because extractors are machinery (they work only within loaded parts of the map), this extraction won't progress further while you are on another planet.