Setup issue on Webpack and Typescript(ts-loader)

Trying to setup SolidJS with Webpack and ts-loader.

Keep getting an issue on return functions.

What exactly am i missing in the loader to solve the issue ?

import { render } from "solid-js/web";
const App = () => {
  // return "Hello World"             // this works!
  return (<div> Hello World </div>)   // this doesnt work!
};
render(App, document.getElementById("app"));

Error Log Output:

> webpack --watch --progress --config webpack.config.js

asset index.js 1.56 KiB [emitted] (name: main)
./src/test.tsx 290 bytes [built] [code generated]

ERROR in ./src/test.tsx 6:12
Module parse failed: Unexpected token (6:12)
File was processed with these loaders:
 * ./node_modules/ts-loader/index.js
You may need an additional loader to handle the result of these loaders.
| const App = () => {
|     // return "Hello World"            // this works!
>     return (<div> Hello World </div>); // this doesnt work!
| };
| render(App, document.getElementById("app"));

webpack 5.47.0 compiled with 1 error in 2081 ms

webpack.config

const path = require('path');

module.exports = {
  mode: 'development',
  entry: './src/test.tsx',
  module: {
    rules: [
      {
        use: 'ts-loader',
        test: /\.(ts|tsx)?$/,
        exclude: /node_modules/
      }
    ]
  },
  resolve: {
    extensions: ['.tsx', '.ts', '.js']
  },
  output: {
    filename: 'index.js',
    path: path.resolve(__dirname, 'dist')
  }
}

UPDATE:

# tsconfig.json

{
  "compilerOptions": {
    "jsx": "preserve",
    "jsxImportSource": "solid-js",
   
    "target": "ESNext",
    "module": "ESNext",
    "moduleResolution": "node",
    "esModuleInterop": false
  },

  "include": ["src/**/*.ts", "src/**/*.tsx"],
  "exclude": ["node_modules"]
}

Solved:

#webpack module rules:

module: {
    rules: [
      {
        test: /\.tsx?$/,
        exclude: /node_modules/,
        use: [
          {
            loader: 'babel-loader',
            options: {
              presets: ['solid'],
            },
          },
          {
            loader: 'ts-loader',
          },
       ]
     }
   ]
},