Abstract-Aggressive technology scaling to 45nm and below introduces serious reliability challenges to the design of microprocessors. Since a large fraction of chip area is devoted to on-chip caches, it is important to protect these SRAM structures against lifetime and manufacture-time failures. Designers typically over-provision caches with additional resources to overcome hard-faults. However, static allocation and binding of redundant spares results in low utilization of the extra resources and ultimately limits the number of defects that can be tolerated. This work re-examines the design of process variation tolerant on-chip caches with a focus on providing the flexibility and dynamic reconfigurability necessary to tolerate large numbers of defects with modest hardware overhead. Our approach, ZerehCache, virtually reorganizes the cache data array using a permutation network to provide more degrees of freedom for spare allocation. A graph coloring algorithm is used to configure the network and identify the proper mapping of replacement elements. We perform an extensive design space exploration of both L1/L2 caches to identify several Pareto optimal ZerehCaches. Given this optimal design points, we employ ZerehCache to extend the effective lifetime of the on-chip caches and prevent early lifetime failures. Finally, yield analysis studies, performed on a population of 1000 chips at the 45nm technology node demonstrated that an L1 design with 16% and an L2 designs with 8% area overheads achieve yields of 99% and 96%, respectively.