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https://www.matrixgames.com/forums/viewtopic.php?t=370545
"-Added Bunkerization Asset Types level I to VII. Each bunker point halves one structural damage point the hex it is in suffers and adds 'extra entrenchment bonus' to troops defending the hex.
-Other Asset levels provide some bunker points as well for the purpose of entrenchment bonus. This makes urban and industrial centers easier to defend. *
-Bunker Assets do not need logistical point link with Zone City to produce their bunker Points.
Here's some details about the mechanics based on some quick testing:
1. Extra entrenchment from bunker points is only added in actual combat, it does not affect the entrenchment shown on the strategic map.
2. It appears to give units an extra entrenchment bonus of up to 50% of their current entrenchment (at least in a plains hex).
3. Bunker points are divided up between the defending units to determine the amount of the extra entrenchment. When I increased the number of troops defending a hex with a Bunker I (400 bunker points) from 800 to 6000, they each got only 12% extra entrenchment rather than 50%.
4. Bunker points can reduce the anti-structure damage from the combat result to 0. (It seems that if the number of bunker points is large enough compared to anti-structure damage, the damage can be halved multiple times until it gets rounded down to 0.) Since bunkers provide from 400 to 50400 bunker points depending on their level, they can offer formidable protection to assets, although constructing them does involve a substantial metal cost."
I know from experience that 3/4 entrenched battalions with bunker lvl 2 do not become magically immovable against tanks - I still lost battles and choke points. So its good bonus if you are preparing for big fight and have extra resources. But if you can - its better to hire more troops.
To me, rushing automated defenses feels like a better use of resources then making the bunkers for holding choke points.
The cap for the extra entrenchment is actually (at least) 100% of current entrenchment, not 50%, which I confirmed when testing if auto-defenses placed in the SHQ reserve are effective for allowing SHQs to survive ICBM strikes (they are).
It's also worth emphasizing that it's a multiplicative bonus like most of the combat modifiers in the game, including multiplicative with current entrenchment. A bunkered-up unit with 250 entrechment has 3.5 * 3.5 = 12.25 times its base amount of hitpoints, before accounting for other modifiers.