Prior work has shown that due to the overhead incurred in enabling reconfigurability, field-programmable gate arrays (FPGAs) require $21\times$ more silicon area, $3\times$ larger delay, and $10\times$ more dynamic power consumption compared with application-specific integrated circuits (ASICs). We have earlier presented a hybrid CMOS/nanotechnology reconfigurable architecture (NATURE). It uses the concept of temporal logic folding and fine-grain (i.e., cycle-level) dynamic reconfiguration to increase logic density by an order of magnitude. Since logic folding reduces area usage significantly, on-chip communications tend to become localized. To take full advantage of this fact, we propose a new architecture, called fine-grain dynamically reconfigurable (FDR), that consists of an array of homogeneous reconfigurable logic elements (LEs). Each LE can be arbitrarily configured into a lookup table (LUT) or interconnect or a combination of both. This significantly enhances the flexibility of allocating hardware resources between LUTs and interconnects based on application needs. The proposed FDR architecture eliminates most of the long-distance and global wires, which occupy most of the area in conventional FPGAs. Fine-grain dynamic reconfiguration is enabled by local embedded static RAM blocks. The experiments show that, on an average, area, delay, and power are improved by $9.14\times$ , $1.11\times$ , and $1.45\times$ , compared with a conventional FPGA architecture that does not use the concept of logic folding. Compared with NATURE with deep logic folding, area, delay, and power are improved by $2.12\times$ , $3.28\times$ , and $1.74\times$ , respectively. Although this does not eliminate the FPGA-ASIC area/delay/power gaps, it makes progress toward bridging these gaps.