diff --git a/e2e/js/src/js-swc.test.ts b/e2e/js/src/js-swc.test.ts
index d1edd859410fc..6724570ee6be1 100644
--- a/e2e/js/src/js-swc.test.ts
+++ b/e2e/js/src/js-swc.test.ts
@@ -134,8 +134,9 @@ export function x() {
 
     // update .swcrc to use path mappings
     updateJson(`libs/${lib}/.swcrc`, (json) => {
+      json.jsc.baseUrl = '.';
       json.jsc.paths = {
-        'src/*': ['src/*'],
+        '~/*': ['./src/*'],
       };
       return json;
     });
@@ -144,7 +145,7 @@ export function x() {
     updateFile(`libs/${lib}/src/lib/${lib}.ts`, () => {
       return `
 // @ts-ignore
-import { x } from 'src/x';
+import { x } from '~/x';
 
 export function myLib() {
   console.log(x());
@@ -154,8 +155,8 @@ myLib();
   `;
     });
 
-    // now run build
-    runCLI(`build ${lib}`);
+    // now run build without type checking (since we're using path mappings not in tsconfig)
+    runCLI(`build ${lib} --skipTypeCheck`);
 
     // invoke the lib with node
     const result = execSync(`node dist/libs/${lib}/src/lib/${lib}.js`, {
diff --git a/packages/js/src/executors/swc/swc.impl.ts b/packages/js/src/executors/swc/swc.impl.ts
index 4bb1a4056081d..3549a2112d5d9 100644
--- a/packages/js/src/executors/swc/swc.impl.ts
+++ b/packages/js/src/executors/swc/swc.impl.ts
@@ -66,21 +66,7 @@ export function normalizeOptions(
   // default to current directory if projectRootParts is [].
   // Eg: when a project is at the root level, outside of layout dir
   const swcCwd = projectRootParts.join('/') || '.';
-  let swcrcPath = getSwcrcPath(options, contextRoot, projectRoot);
-
-  try {
-    const swcrcContent = readJsonFile(swcrcPath) as Options;
-    // if we have path mappings setup but baseUrl isn't specified, then we're proceeding with the following logic
-    if (
-      swcrcContent.jsc &&
-      swcrcContent.jsc.paths &&
-      !swcrcContent.jsc.baseUrl
-    ) {
-      swcrcContent.jsc.baseUrl = `./${projectDir}`;
-      swcrcPath = getSwcrcPath(options, contextRoot, projectRoot, true);
-      writeJsonFile(swcrcPath, swcrcContent);
-    }
-  } catch (e) {}
+  const swcrcPath = getSwcrcPath(options, contextRoot, projectRoot);
 
   const swcCliOptions = {
     srcPath: projectDir,
diff --git a/packages/js/src/utils/swc/compile-swc.ts b/packages/js/src/utils/swc/compile-swc.ts
index aa441ad9f8dd6..61edec414dc43 100644
--- a/packages/js/src/utils/swc/compile-swc.ts
+++ b/packages/js/src/utils/swc/compile-swc.ts
@@ -10,7 +10,7 @@ function getSwcCmd(
   { swcrcPath, srcPath, destPath }: SwcCliOptions,
   watch = false
 ) {
-  let swcCmd = `npx swc ${srcPath} -d ${destPath} --no-swcrc --config-file=${swcrcPath}`;
+  let swcCmd = `npx swc ${srcPath} -d ${destPath} --config-file=${swcrcPath}`;
   return watch ? swcCmd.concat(' --watch') : swcCmd;
 }
 
diff --git a/packages/js/src/utils/swc/get-swcrc-path.ts b/packages/js/src/utils/swc/get-swcrc-path.ts
index 43cd059d32cde..cc4acdbb1b9c4 100644
--- a/packages/js/src/utils/swc/get-swcrc-path.ts
+++ b/packages/js/src/utils/swc/get-swcrc-path.ts
@@ -4,14 +4,9 @@ import { SwcExecutorOptions } from '../schema';
 export function getSwcrcPath(
   options: SwcExecutorOptions,
   contextRoot: string,
-  projectRoot: string,
-  temp = false
+  projectRoot: string
 ) {
-  let swcrcPath = options.swcrc ?? join(projectRoot, '.swcrc');
-
-  if (temp) {
-    swcrcPath = join('tmp', swcrcPath.replace('.swcrc', '.generated.swcrc'));
-  }
-
-  return join(contextRoot, swcrcPath);
+  return options.swcrc
+    ? join(contextRoot, options.swcrc)
+    : join(contextRoot, projectRoot, '.swcrc');
 }