Sparse Autoencoders (SAEs) decompose language-model activations into sparse, interpretable features, but standard encoders usually treat the latent dictionary as a flat set of independent coordinates, leaving hierarchy and feature interactions to emerge only implicitly. We propose KronSAE, a design that factorizes the latent space into heads and forms post-latent features as pairwise compositions of lower-dimensional pre-latents using mAND, a differentiable AND-like interaction. This imposes a compositional co-activation prior while remaining compatible with standard SAE objectives and variants such as TopK, Matryoshka, and Switch SAEs. KronSAE matches strong baselines on the EV-FLOPs frontier, improves interpretability of the latents, better captures the underlying correlated feature structure, and reduces encoder computational cost as an additional benefit. Code is available at https://github.com/corl-team/kronsae.

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