Device locating companion in part of New England (7)
I believe the answer is:
machine
'device' is the definition.
(machine is a kind of device)
'companion in part of new england' is the wordplay.
'companion' becomes 'ch' (Companion of Honour).
'in' is an insertion indicator.
'part of new england' becomes 'Maine' (state in the New England region).
'ch' put inside 'maine' is 'MACHINE'.
'locating' acts as a link.
I am not very happy about this link. It may be part of another bit of the clue.
(Other definitions for machine that I've seen before include "Industrial worker" , "Device for work" , "See 12" , "Automaton" , "Powered mechanism" .)