webpack.config.js

const path = require('path');
module.exports = {
  mode: 'production',
  // webpack will take the files from ./src/index
  entry: './src/index.ts',
  // and output it into /dist as bundle.js
  output: {
    path: path.join(__dirname, '/dist'),
    filename: 'main.js',
    publicPath: '/',
    libraryTarget: 'umd',
  },
  devtool: 'source-map',
  externals: {
    'styled-components': 'styled-components',
    react: 'react',
    'react-dom': 'react-dom',
  },
  // adding .ts and .tsx to resolve.extensions will help babel look for .ts and .tsx files to transpile
  resolve: {
    extensions: ['.ts', '.tsx', '.js', 'jsx'],
    restrictions: [/(?<!.stories)\.(ts|js)x?$/],
  },
  module: {
    rules: [
      // we use babel-loader to load our jsx and tsx files
      {
        test: /(?<!.stories)\.(ts|js)x?$/,
        exclude: /(node_modules)/,
        use: {
          loader: 'babel-loader',
        },
      },
      // css-loader to bundle all the css files into one file and style-loader to add all the styles  inside the style tag of the document
      {
        test: /\.css$/,
        use: ['style-loader', 'css-loader'],
      },
      {
        test: /\.(png|svg|jpg|jpeg|gif|ico)$/,
        exclude: /node_modules/,
        use: ['file-loader?name=[name].[ext]'], // ?name=[name].[ext] is only necessary to preserve the original file name
      },
    ],
  },
  target: 'node',
};