University can set up module (4)
I believe the answer is:
unit
'module' is the definition.
(both can mean a part of something)
'university can set up' is the wordplay.
'university' becomes 'u' (abbreviation for university).
'can' becomes 'tin' (synonyms).
'set up' is a reversal indicator (in a down clue, letters go up).
'tin' in reverse letter order is 'nit'.
'u'+'nit'='UNIT'
(Other definitions for unit that I've seen before include "Item combining separate parts" , "Single person - group of people" , "Single element; one" , "Building block - small military force" , "Quantity chosen as standard, or individual thing" .)