Intertwined magnetic and nematic orders in semiconducting KFe$_{0.8}$Ag$_{1.2}$Te$_2$

Superconductivity in the iron pnictides emerges from metallic parent compounds exhibiting intertwined stripe-type magnetic order and nematic order, with itinerant electrons suggested to be essential for both. Here we use X-ray and neutron scattering to show that a similar intertwined state is realized in semiconducting KFe$_{0.8}$Ag$_{1.2}$Te$_2$ (K$_5$Fe$_4$Ag$_6$Te$_{10}$) without itinerant electrons. We find Fe atoms in KFe$_{0.8}$Ag$_{1.2}$Te$_2$ form isolated $2\times2$ blocks, separated by nonmagnetic Ag atoms. Long-range magnetic order sets in below $T_{\rm N}\approx35$ K, with magnetic moments within the $2\times2$ Fe blocks ordering into the stripe-type configuration. A nematic order accompanies the magnetic transition, manifest as a structural distortion that breaks the fourfold rotational symmetry of the lattice. The nematic orders in KFe$_{0.8}$Ag$_{1.2}$Te$_2$ and iron pnictide parent compounds are similar in magnitude and how they relate to the magnetic order, indicating a common origin. Since KFe$_{0.8}$Ag$_{1.2}$Te$_2$ is a semiconductor without itinerant electrons, this indicates that local-moment magnetic interactions are integral to its magnetic and nematic orders, and such interactions may play a key role in iron-based superconductivity.